Asia distillates-gasoil cash differentials rise to strongest in 4-1/2 months
SINGAPORE, Dec 21 (Reuters) - Asia's cash differentials for 10 ppm gasoil firmed to their highest level in four-and-a-half months on Monday, while refining margins for the industrial fuel slipped despite weaker prices of raw material crude.
Cash discounts for gasoil with 10 ppm sulphur content <GO10-SIN-DIF> narrowed by a cent to 4 cents a barrel to Singapore quotes, the smallest discount since differentials plunged into a negative territory on Aug. 11.
The gasoil market has firmed in recent weeks, thanks to reviving demand from India and China, but analysts have warned that increased refinery runs and reimposed lockdowns in several other key markets would pressurise refining margins and prices in the near term.
Refining margins, also known as cracks, for 10 ppm gasoil were at $6.25 a barrel over Dubai crude during Asian trading hours, down from a more than four-month high of $6.54 per barrel on Friday. Cracks for the benchmark gasoil grade in Singapore have more than doubled in the last two months, but they are still currently about 57% lower than their historical average for this time of the year, Refinitiv Eikon data showed.
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