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Asia Distillates-Gasoil cash premiums hit over 15-mth high, Nov/Dec spread widens

SINGAPORE, Oct 22 (Reuters) – Asia’s cash premiums for 10 ppm gasoil extended gains on Friday to hit their highest level in more than 15 months, buoyed by firmer demand for physical cargoes amid tighter supplies. Cash differentials for gasoil with 10 ppm sulphur content <GO10-SIN-DIF>, which have surged 54% in the last month, were at a premium of 77 cents per barrel to Singapore quotes on Friday. The front-month time spread for 10 ppm gasoil widened its backwardation on Friday to trade at 95 cents per barrel. “The middle distillate continues to be the highest-yielding product across the barrel, supported by increasing demand for diesel for power generation in China and India, while supply remains tight,” Zameer Yusof, senior analyst at Refinitiv Oil Research said in a weekly note. “India’s October-loading diesel exports are assessed at 1.32 million tonnes and are expected to close below September’s revised total of 2.36 million tonnes, amid rebounding domestic demand in Q4 as the country transitions out of the monsoon season and into the peak demand festive Diwali season in November.” Refining margins or cracks for 10 ppm gasoil slipped 14 cents to $14.35 per barrel over Dubai crude during Asian trading hours, posting an 8.2% weekly drop on Friday. CHINA’S CNOOC MAKES RARE DIESEL IMPORTS – China’s state-run CNOOC has booked two diesel shipments totalling about 50,000 tonnes for early November delivery into south China, a rare purchase spurred by a strong domestic diesel market, several trading sources said on Friday. – China has been a net diesel exporter in recent years but a reduction in domestic refinery throughput since June has tightened supplies and led to a rally in wholesale prices of the main transportation and industrial fuel. ARA INVENTORIES – Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub <STK-GO-ARA> rose 10% to 2.2 million tonnes in the week ended Oct. 21, according to Dutch consultancy Insights Global. – The rise in gasoil stocks was due to stronger imports from Russia, Insights Global’s Lars van Wageningen said. – ARA jet fuel inventories <STK-JET-ARA> climbed 1% this week to 884,000 tonnes. SINGAPORE CASH DEALS – Two gasoil deals, no jet fuel trades OTHER NEWS – China’s thermal coal futures sank about 13% on Friday, extending their losses since Tuesday when Beijing said it would intervene to cool surging prices of the commodity to help electricity producers out of a widespread power crunch. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 94.55 -0.49 -0.52 95.04 <GO-SIN> GO 0.5 Diff -1.41 0.01 -0.70 -1.42 <GO-SIN-DIF> Spot Gas Oil 0.25% 94.85 -0.49 -0.51 95.34 <GO25-SIN> GO 0.25 Diff -1.11 0.01 -0.89 -1.12 <GO25-SIN-DIF> Spot Gas Oil 0.05% 95.24 -0.49 -0.51 95.73 <GO005-SIN> GO 0.05 Diff -0.72 0.01 -1.37 -0.73 <GO005-SIN-DIF> Spot Gas Oil 0.001% 96.72 -0.43 -0.44 97.15 <GO10-SIN> GO 0.001 Diff 0.77 0.07 10.00 0.7 <GO10-SIN-DIF> Spot Jet/Kero 94.59 -0.36 -0.38 94.95 <JET-SIN> Jet/Kero Diff 0.21 0.01 5.00 0.2 <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;)

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