Singapore Gasoil Cracks at 3-Month Low: Platts

Singapore’s ultra-low sulphur gasoil front month swap crack vs front month Dubai hit a three-month low as regional stockpiles remained high despite lower export volumes from China, Platts said.

• The crack was assessed at $13.95/b as of Asian close Aug. 20.
• "There are still a lot of cargoes in the market. We will need to see how much China issues for the third batch of export quotas to see whether the weak economic outlook [there] would make them allocate more export volumes," a regional gasoil trader told Platts.
• China has around 7.23m mt of clean product export quotas for August onward, likely covering two months of exports. Sources told Platts a third batch of quotas may come in September.
• On demand, East-West arbitrage volatility continues to trap surplus barrels East of Suez.
• The weakness is expected to persist until September, when some winter heating demand may return.