Asia Distillates-Gasoil cracks hit highest in over a month

Asian refining margins for 10 ppm gasoil climbed to their strongest in more than a month on Tuesday, while cash premiums for the transportation fuel inched higher, thanks to a stronger deal in the physical market.

Trade sources said the gasoil market is getting support as lower rates at some refineries have helped cut excess supplies from the region, but the ongoing new wave of coronavirus infections will deter any sustainable demand recovery in the near term.

Refining margins or cracks for gasoil with 10 ppm sulphur content rose 60 cents to $7.22 a barrel over Dubai crude during Asian trading hours, the highest level since June 18. The cracks, however, might lose steam over the next few weeks as India and China are expected to export higher gasoil volumes this month, compared with June, market watchers said.

ET Energy Word
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