Refining margins, also known as cracks, for 10 ppm gasoil fell to $8 per barrel over Dubai crude during Asian trading hours, the lowest since June 30.
They were at $8.12 per barrel on Friday. Cracks for the benchmark gasoil grade in Singapore have shed 5.5% over the last two weeks as several countries reimposed curbs to battle surging COVID-19 infections.
Thailand reported a record number of coronavirus cases on Monday, while Malaysia has notched up more than 1 million infections, as the virulent Delta variant carves a deadly path through Southeast Asia - now a global epicentre for the virus.
Meanwhile, China has also reported its highest number of cases since the end of January amid a surge of local infections in the eastern city of Nanjing. Traders expect lower gasoil exports from China in coming weeks, which they said, should provide some support to the market in the near term.
The regional market, however, would still likely grapple with robust supplies from India, where peak monsoon season dents domestic consumption and leads to a rise in exports, they added. India's western state of Maharashtra is currently being hit by the heaviest rain in July in four decades, with downpours lasting several days severely affecting the lives of hundreds of thousands, and major rivers are in danger of bursting their banks.
Cash differentials for gasoil with 10 ppm sulphur content
TENDERS - India's Mangalore Refinery and Petrochemicals Ltd has offered 65,000 tonnes or, 80,000 tonnes of 10ppm gasoil for Aug. 15-17 loading from the port of New Mangalore. The tender closes on July 27.
- State-run Indian Oil Corp has offered a high speed diesel cargo of 28,000-29,000 tonnes for Aug. 11-12 loading from Dahej terminal, a broker source said. IOC has offered another HSD cargo of 31,000-33,000 tonnes for loading over Aug. 12-13 from the port of Kandla.
SINGAPORE CASH DEALS - No jet fuel trades, no gasoil deals OTHER NEWS - Beijing's crackdown on the misuse of import quotas combined with the impact of high crude prices could see China's growth in oil imports sink to the lowest in two decades in 2021, despite an expected rise in refining rates in the second half. - Reuters