Asia’s cash differentials for 10 ppm gasoil slipped to their lowest level in more than two months on Wednesday, weighed down by abundant supplies and subdued demand, while the prompt-month spread for the industrial fuel remained in a contango structure. Cash differentials for 10 ppm gasoil were at a discount of 21 cents a barrel to Singapore quotes on Wednesday, a level not seen since June 1. They were at a 9-cent discount a day earlier. The August/September time spread for the benchmark gasoil grade in Singapore traded at a discount of 18 cents per barrel on Wednesday, Refinitiv Eikon data showed.
Renewed lockdown measures due to a resurgence in coronavirus infections in many places are hurting fuel demand recovery, trade sources said. India’s fuel demand dragged lower in July