Gasoil margins, premiums extend gains as oil firms

SINGAPORE: Asia’s 10 ppm sulphur gasoil margins and premiums rallied for a second consecutive day as oil futures rose despite a lack of spot deals and emergence of January supplies.

Cash differentials for 10 ppm sulphur gasoil recovered to $1.59 a barrel. Some buying interest emerged for January parcels but a buy-sell gap hindered deals.

Refining margins for 10 ppm sulphur gasoil surged by more than $3 a barrel to $34.12 a barrel. Jet fuel refining margins firmed as well by $3.01 a barrel to $29.74 a barrel. (26.73)

Regrade widened to minus $4.38 a barrel.South Korea’s SK Energy offers Jan gasoil. India’s Nayara Energy offers Jan jet fuel. US crude oil stockpiles were expected to have dropped last week, whereas gasoline and distillates inventories were seen higher, a preliminary Reuters poll showed on Monday. Seven analysts polled by Reuters estimated on average that crude inventories dropped by about 3.9 million barrels in the week to Dec. 9.