Asia Distillates-Gasoil cracks post second straight weekly jump

Asian refining margins for 10 ppm gasoil climbed for a fourth consecutive session, posting a second straight weekly gain, riding on tighter supplies amid lower Chinese exports in the spot market and steady arbitrage shipments to the West.

Refining margins or cracks for 10 ppm gasoil jumped to $11.24 per barrel over Dubai crude during Asian trading hours, a fresh high since March-end last year. They were at $10.85 per barrel a day earlier. Cracks for the benchmark gasoil grade in Singapore have risen 7% this week, Refinitiv Eikon data showed. Cash premiums for gasoil with 10 ppm sulphur content dipped 3 cents to 45 cents per barrel to Singapore quotes on Friday, while cash differentials for jet fuel were at a premium of 11 cents per barrel to Singapore quotes, up from 4 cents per barrel on Thursday. Jet fuel cracks surged to $9.16 per barrel over Dubai crude during Asian trading hours, the strongest since March 2020. The cracks were at $8.57 per barrel in the previous session.

Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped 5.7% to about 2 million tonnes in the week ended Sept. 23, according to Dutch consultancy Insights Global. - ARA jet fuel inventories fell 14.7% this week to 879,000 tonnes.

State major PetroChina and private refiner Hengli Petrochemical on Friday won four cargoes totalling about 4.43 million barrels, or 60% of the total oil offered in China's first state reserves auction, industry sources said. - Completed in less than an hour, PetroChina's Dalian refinery took one cargo each of Qatar Marine and U.K. Forties crude at $65 a barrel, said several sources with direct knowledge of the matter. Hengli bought an Oman cargo at $65 a barrel and Abu Dhabi's Upper Zakum crude at $70.50 a barrel, they said.

 

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