SINGAPORE: Asia’s cash premiums for gasoil with 10 ppm sulphur content weakened on Friday as markets continued to digest dented demand sentiment following fresh lockdowns in top consumer China.
Cash differentials for 10 ppm gasoil stood at a premium of $1.77 a barrel to Singapore quotes, down from $1.95 in the previous session, and posting a weekly loss of over 2%.
Latest data indicates China’s apparent gasoil demand fell 4% month-on-month to 1 million mt in July as a result of pandemic-enforced lockdowns, Refinitiv Oil Research wrote in a monthly report.
Demand is expected to remain sluggish in the near term with fresh restrictions placed on over 40 million people in Hebei, Tianjin, Shenzhen and Chengdu this week, the report added.
Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose to 1.702 million tonnes in the week to Thursday from 1.696 million tonnes in the prior week, Insights Global data showed.
Jet fuel stocks at the ARA hub declined to 727,000 tonnes in the week to Sept. 1 from 802,000 tonnes in the prior week.
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