NEW DELHI: Asia’s refining margins for 10 ppm gasoil touched a record high on Friday and posted a weekly gain of more than 15% on hopes of recovering consumption in China amid a global shortage of the industrial fuel.

Refining profit margins, or cracks, for 10 ppm gasoil rose to $65.15 per barrel over Dubai crude on Friday, a new high, according to Refinitiv Eikon data that goes back to 2014. The cracks stood at $64.62 per barrel on Thursday.

Cash differentials for gasoil with 10 ppm sulphur content inched lower on Friday to a premium of $7.03 a barrel to Singapore quotes, compared with $7.29 per barrel a day earlier.

Shanghai’s economy contracted for a second month in May although at a somewhat slower pace, official data showed. Industrial output of Shanghai, which sits at the heart of manufacturing in the Yangtze River Delta, fell 27.6% last month from a year earlier, but the drop was less sharp than the 61.5% slump in April.

Meanwhile, Asian refining margins for jet fuel surged to $57.18 per barrel over Dubai crude during Asian trade on Friday, the highest on record according to Refinitiv Eikon data that goes back to 2009. They were at $56.02 per barrel in the last session.

Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area slipped more than 3% to 1.41 million tonnes, but weekly exports to inland locations along the Rhine river were at their lowest levels since late 2017. Two 10 ppm gasoil deal, no jet fuel trades.