SINGAPORE: Asian refining margins for 10 ppm gasoil climbed on Monday, lifted by weaker raw material crude prices and tight supplies, while cash premiums for the industrial fuel grade inched up as the front-month spread widened its backwardated structure.

Refining margins, also known as cracks, for 10 ppm gasoil rose to $40.54 a barrel over Dubai crude during Asian trading hours, from $39.43 per barrel on Friday.

Cracks for the benchmark gasoil grade in Singapore have averaged $35.51 a barrel so far this month, compared with $28.62 a barrel in March, Refinitiv Eikon data showed.

The May/June time spread for 10 ppm gasoil traded at $8.25 per barrel on Monday, as against $7.40 a barrel on Friday.

Cash differentials for gasoil with 10 ppm sulphur content were at a premium of $7.78 a barrel to Singapore quotes on Monday, compared with $7.76 per barrel at the end of last week.

Shanghai’s COVID-19 lockdown misery dragged into a fourth week, as orders on Monday for mass testing in Beijing’s biggest district sparked fears that the Chinese capital could be destined for a similar fate.

In their battle to stamp out the virus, authorities in Shanghai said they would reserve the harshest restrictions for smaller areas around confirmed cases, raising hopes of some respite among the millions of people currently living in strictly quarantined neighbourhoods.