SINGAPORE: Asia’s cash premiums for 10 ppm gasoil fell on Thursday amid a muted trading window, after stocks in the Singapore hub rose to a six-week high.
Cash differentials for gasoil with 10 ppm sulphur content were at a premium of $1.79 a barrel to Singapore quotes, down from $1.91 per barrel in the last session. Refining margins for 10 ppm gasoil rose to $40.31 a barrel over Dubai crude in Asian trading hours, compared with $34.91 on Wednesday.
On the supply side, August volumes for gasoil are expected to reach 8 million tonnes, as refiners ramp up exports amid still-high run rates and weak domestic demand, Refinitiv Oil Research said in a monthly report.
“High domestic stockpiles in China and sluggish demand in India during the monsoon season are other contributing factors (to weakness in the market),” the report added.
US distillate stockpiles, which include diesel and heating oil, fell by 2.4 million barrels last week, government data showed, compared with analysts’ estimates of a rise by about 1.0 million barrels in a Reuters poll.
Singapore stocks of middle distillates jumped 1.122 million barrels to a six-week high of 8.366 million barrels in the week to Aug. 3, official data showed. No gasoil trades, no jet fuel deals.
Oil prices rose on Thursday as supply concerns triggered a rebound from multi-month lows plumbed in the previous session after US data signalled weak fuel demand.
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