Asia Distillates-Gasoil cash differentials stumble to 4-week low - Reuters

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    SINGAPORE, Jan 4 (Reuters) - Asia's cash differentials for 10 ppm gasoil slid to their
lowest level in four weeks on Monday, weighed down by weaker deal values in the physical market
and concerns over short-term demand as surging COVID-19 cases lead to renewed lockdown measures
in several countries.
    South Korea expanded a ban on private gatherings larger than four people to the whole
country, while Japan said it would consider declaring a state of emergency for the Greater Tokyo
metropolitan area as coronavirus cases soar.
    Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at a discount
of 19 cents a barrel to Singapore quotes, the widest discounts since Dec. 7. They were at a
discount of 11 cents per barrel on Thursday, the last trading day of 2020.
    The Jan/Feb time spread for 10 ppm gasoil in Singapore deepened its contango
on Monday to trade at a discount of 9 cents per barrel.
    Refining margins, also known as cracks, for 10 ppm gasoil rose to $6.36 a
barrel over Dubai crude during Asian trading hours.
    The cracks for the benchmark gasoil grade in Singapore, which averaged $6.78 per barrel over
Dubai crude in 2020, are currently 57% lower than their seasonal five-year average for this time
of the year, Refinitiv Eikon data showed.
    Northwest European diesel barge refining margins have also ended 2020 at around $6 a barrel,
the lowest in over ten years.
    Asian gasoil market in the next few months would be impacted by the demand situation in
Europe as that would affect the arbitrage economics, industry analysts said.
    The exchange of futures for swaps (EFS), which determines the gasoil price spread between
Singapore and Northwest Europe, traded at minus $7.88 per tonne on Monday, which
typically makes it unworkable for arbitrage shipments.
    Arbitrage is usually profitable when the EFS trades at about minus $15 a tonne or below,
though it also depends on other factors such as freight rates, according to traders.
    
    SINGAPORE CASH DEALS
    - Four gasoil deals, no jet fuel trades

    OTHER NEWS
    - Oil prices touched multi-month highs on Monday on expectations OPEC and allied producers
may cap output at current levels in February and on hopes that coronavirus vaccines may help
curb the spread of the virus and drive a strong economic rebound in the new year.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 56.99     1.38       2.48       55.61  GO-SIN
 GO 0.5 Diff                       -1.54    -0.08       5.48       -1.46  GO-SIN-DIF
 Spot Gas Oil 0.25%                57.09     1.38       2.48       55.71  GO25-SIN
 GO 0.25 Diff                      -1.44    -0.08       5.88       -1.36  GO25-SIN-DIF
 Spot Gas Oil 0.05%                57.19     1.38       2.47       55.81  GO005-SIN
 GO 0.05 Diff                      -1.34    -0.08       6.35       -1.26  GO005-SIN-DIF
 Spot Gas Oil 0.001%               58.34     1.38       2.42       56.96  GO10-SIN
 GO 0.001 Diff                     -0.19    -0.08      72.73       -0.11  GO10-SIN-DIF
 Spot Jet/Kero                     56.75     1.37       2.47       55.38  JET-SIN
 Jet/Kero Diff                     -0.12    -0.05      71.43       -0.07  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 Krishna Chandra Eluri)
  

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Asia Distillates-Gasoil cash differentials stumble to 4-week low - Reuters
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