NEW DELHI: Asia’s cash premiums for 10 ppm gasoil rose to their highest level since October 2019 on Monday, supported by signs of tightness in regional supply amid falling inventories.
Cash premiums for gasoil with 10 ppm sulphur content climbed to $1.23 a barrel to Singapore quotes, compared with $1.15 per barrel on Friday.
Asian cracks for 10 ppm gasoil rose to a more than two-year high of $16.46 a barrel over Dubai crude during Asian trading hours, up from $15.54 per barrel in the last session.
“Gasoil and jet fuel inventories in the East of Suez have shed more barrels last week, reaching a new post-pandemic low,” consultancy JBC Energy said in a note.
Cash differentials for jet fuel also rose to a premium of 90 cents per barrel to Singapore quotes, from 81 cents on Friday.
Oil prices were steady on Monday as investor bets that global supply will remain tight amid restraint by major producers were offset by a rise in Libyan output.