Asia Distillates-Gasoil cash premiums dip, cracks hit 2-month high
SINGAPORE: Asia’s cash premiums for 10 ppm gasoil dipped on Monday, hurt by a weaker deal in the physical market, but traders expect the market to remain tight in the near term. Cash premiums for gasoil with 10 ppm sulphur content
Refining margins, also known as cracks, for 10 ppm gasoil rose to a two-month high of $14.48 a barrel over Dubai crude during Asian trading hours, up from $14.08 per barrel on Friday. Meanwhile, jet fuel cracks climbed to $12.63 per barrel over Dubai crude on Monday, against $11.78 a barrel at the end of last week.
Cash differentials for jet fuel flipped to a premium of 9 cents per barrel to Singapore quotes on Monday, compared with a discount of 2 cents per barrel on Friday. Indonesia is yet to reach a decision on lifting its coal export ban as authorities discussed overcoming logistic issues that have slowed efforts to distribute coal to domestic power plants, a mining group executive said on Sunday.
The world’s biggest thermal coal exporter suspended coal exports on Jan. 1 after Indonesia’s state power utility reported dangerously low inventory levels of the fuel, putting Southeast Asia’s biggest economy on the brink of widespread power outages.
Indonesia’s Coordinating Ministry of Maritime and Investment Affairs met with miners and other related industry again on Sunday, but has not made any decision yet regarding resuming exports, said Hendra Sinadia, executive director of Indonesia Coal Miners Association.
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