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Asia Distillates-Gasoil cracks mark weekly gain as demand improves

SINGAPORE, July 3 (Reuters) – Asian refining margins for 10 ppm gasoil inched lower on Friday, but marked a weekly gain of nearly 2% as demand for the industrial and transport fuel gradually picks up pace with countries easing coronavirus-related lockdown measures. Refining margins, also known as cracks, for gasoil with 10-ppm sulphur content dipped 2 cents to $6.66 a barrel over Dubai crude during Asian trading hours on Friday. The gasoil cracks have gained 69.9% in the last one month as industrial activity partly recovered from the worst of the COVID-19 pandemic, market watchers said. “Taking China as an example, the construction sector looks set to benefit as the government pushes through an infrastructure-based stimulus plan to reinvigorate the economy,” said Peter Lee, senior oil and gas analyst at Fitch Solutions. “Agri activities should also benefit, as labourers return to workplaces and resume routine work.” Meanwhile, gasoil loadings out of Asia in June were seen at a five-year low of 6.75 million tonnes, down from 9.12 million tonnes in May, mainly due to improving demand from within Asia, according to Refinitiv oil Research assessments. India’s gasoil exports in June were at a one-year-low of 1.81 million tonnes, while China’s exports for the month closed at a five-year low of around 823,000 tonnes, the Refinitiv assessments showed. Cash premiums for 10-ppm gasoil <GO10-SIN-DIF> dropped to 67 cents a barrel to Singapore quotes on Friday, from 84 cents per barrel a day earlier. ARA STOCKS – Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub <STK-GO-ARA> fell 5.5% to 2.6 million tonnes in the week to July 2, data from Dutch consultancy Insights Global showed. – ARA jet fuel inventories <STK-JET-ARA> rose 2.6% to 944,000 tonnes, the data showed. – Compared with a year earlier, jet fuel stocks were 16.8% higher, while gasoil inventories were down 10.9%. SINGAPORE CASH DEALS – Two gasoil deals, no jet fuel trades ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 48.28 0.01 0.02 48.27 <GO-SIN> GO 0.5 Diff -0.80 -0.04 5.26 -0.76 <GO-SIN-DIF> Spot Gas Oil 0.25% 48.92 0.01 0.02 48.91 <GO25-SIN> GO 0.25 Diff -0.16 -0.04 33.33 -0.12 <GO25-SIN-DIF> Spot Gas Oil 0.05% 49.71 -0.09 -0.18 49.80 <GO005-SIN> GO 0.05 Diff 0.63 -0.14 -18.18 0.77 <GO005-SIN-DIF> Spot Gas Oil 0.001% 49.75 -0.13 -0.26 49.88 <GO10-SIN> GO 0.001 Diff 0.67 -0.17 -20.24 0.84 <GO10-SIN-DIF> Spot Jet/Kero 42.80 0.43 1.01 42.37 <JET-SIN> Jet/Kero Diff -0.55 0.12 -17.91 -0.67 <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 Susan Fenton)

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