Gasoil cash premiums drop, cracks weaken

SINGAPORE: Asia’s cash premiums for 10 ppm gasoil slipped on Monday, hurt by weaker buying interests for physical cargoes, while the front-month spread for the industrial fuel grade narrowed its backwardated structure.

The regional gasoil market would likely see supplies increasing in coming weeks as transportation demand typically take a hit during monsoon months in key markets such as India and Vietnam, trade sources said.

Cash differentials for gasoil with 10 ppm sulphur content, which have plunged 42% so far this month, were at a premium of $4.40 a barrel to Singapore quotes on Monday. They were at a premium of $4.75 per barrel on Friday.