SINGAPORE: Asia’s cash premiums for 10 ppm gasoil edged higher on Monday, supported by steady buying interests in the physical market and expectations for stronger arbitrage demand from the West in coming months.
Cash differentials for gasoil with 10 ppm sulphur content were at a premium of $7.70 a barrel to Singapore quotes, up 1 cent from Friday.
The prompt-month time spread for the benchmark gasoil grade in Singapore traded at $8.15 per barrel on Monday, narrowing from $9.20 a barrel on Friday.
Refining margins, also known as cracks, for 10 ppm gasoil dropped to $38.85 a barrel over Dubai crude during Asian trading hours, compared with $42.12 a barrel at the end of last week.
Meanwhile, jet fuel refining margins slipped to $33.60 per barrel over Dubai crude, as against $35.72 per barrel on Friday.
Cash premiums for jet fuel dropped 25 cents to $3.90 a barrel to Singapore quotes on Monday.
China’s crude oil imports grew nearly 7% in April from the same month a year earlier, its first rise in three months, although weakening fuel demand due to COVID-19 lockdowns has dampened throughput at Chinese refineries.
The world’s top crude oil buyer imported 43.03 million tonnes last month, data from the General Administration of Customs showed on Monday, equivalent to 10.5 million barrels per day (bpd). That compares with 9.82 million bpd in April 2021 and 10.06 million bpd in March.
Refinery throughput last month is estimated to have fallen about 6%. A decline of that size has not been seen since the early days of the COVID-19 pandemic.
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