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Asia Distillates-Gasoil cracks crawl up on lower raw material prices, cash premiums drop

SINGAPORE, June 4 (Reuters) – Asian refining margins for 10 ppm gasoil inched up on Thursday as raw material – crude – prices fell, but cash differentials for the industrial fuel slipped amid an absence of deals in the physical market. Refining margins for 10ppm gasoil were at $4.29 per barrel over Dubai crude during Asian trading hours, 37 cents higher than Wednesday. Cash premiums for 10 ppm gasoil <GO10-SIN-DIF> dropped to 19 cents a barrel to Singapore quotes on Thursday, compared with 35 cents a day earlier. Traders, however, hope gasoil demand would pick up in the coming weeks as more countries lift coronavirus restrictions. The gasoil/diesel demand over the second half of this year is set to come in just below 200,000 barrels per day (bpd) year-on-year, which is a strong recovery compared with the 1.25 million bpd fall over the first half of 2020, according to JBC Energy. “The recovery in gasoline and diesel is seen quite consistent between the two, with easing personal mobility restrictions also lifting economic (commercial) activity,” said Kostantsa Rangelova, lead Asia analyst at JBC Energy. INVENTORIES – Singapore onshore middle distillate stocks dipped 2% to a two-week low of 14.6 million barrels in the week ended June 3, Enterprise Singapore data showed. – The weekly Singapore middle distillate inventories have averaged at 12.5 million barrels so far in 2020, Reuters calculations showed. This week’s stocks were 31.8% higher year-on-year. – U.S. distillate stockpiles rose by 9.9 million barrels to 174.3 million barrels, compared with expectations for a 2.7 million-barrel build, the Energy Information Administration said on Wednesday. APRIL AIR PASSENGER DATA – IATA – Global air passenger traffic for April showed that demand slumped 94.3% from a year earlier due to coronavirus-led travel restrictions, the International Air Transport Association (IATA) said on Wednesday. – April passenger traffic for Asia-Pacific airlines plunged 98% compared to the year-ago period, even worse than a 70.2% drop in March, according to IATA data. – “April was a disaster for aviation as air travel almost entirely stopped. But April may also represent the nadir of the crisis. Flight numbers are increasing. Countries are beginning to lift mobility restrictions,” IATA Chief Executive Alexandre de Juniac said. – Among regional markets, China’s domestic passenger demand was down 66.6% in April year-on-year, while airlines in Japan posted a decline of 88.7% in domestic traffic. SINGAPORE CASH DEALS – No jet fuel trade, no gasoil deal OTHER NEWS – The volume of oil products traded during S&P Global Platts’ Market-on-Close process in Singapore plunged 74% in May from a year ago as the coronavirus pandemic slashed demand and a major trader halted business, data analysed by Reuters showed. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 40.63 -0.51 -1.24 41.14 <GO-SIN> GO 0.5 Diff -2.25 0.28 -11.07 -2.53 <GO-SIN-DIF> Spot Gas Oil 0.25% 41.53 -0.51 -1.21 42.04 <GO25-SIN> GO 0.25 Diff -1.35 0.28 -17.18 -1.63 <GO25-SIN-DIF> Spot Gas Oil 0.05% 42.27 -0.61 -1.42 42.88 <GO005-SIN> GO 0.05 Diff -0.61 0.18 -22.78 -0.79 <GO005-SIN-DIF> Spot Gas Oil 0.001% 43.06 -0.97 -2.20 44.03 <GO10-SIN> GO 0.001 Diff 0.19 -0.16 -45.71 0.35 <GO10-SIN-DIF> Spot Jet/Kero 38.86 -0.93 -2.34 39.79 <JET-SIN> Jet/Kero Diff -0.22 0.03 -12.00 -0.25 <JET-SIN-DIF> For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 Gasoil M1 Gasoil M1/M2 Gasoil M2 Regrade M1 Regrade M2 Jet M1 Jet M1/M2 Jet M2 Gasoil 500ppm-Dubai Cracks M1 Gasoil 500ppm-Dubai Cracks M2 Jet Cracks M1 Jet Cracks M2 East-West M1 East-West M2 LGO M1 LGO M1/M2 LGO M2 Crack LGO-Brent M1 Crack LGO-Brent M2 (Reporting by Koustav Samanta; Editing by Vinay Dwivedi)

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