January 28, 2020 / 11:39 AM / 2 months ago

Asia Distillates-Jet cash premiums dip, cracks at lowest since June 2017

    SINGAPORE, Jan 28 (Reuters) - Asia's cash differentials for jet fuel slipped on Tuesday amid
muted buying interest for physical cargoes, while front-month spread for the aviation fuel
narrowed its backwardation.
    Cash premiums for jet fuel JET-SIN-DIF fell to 36 cents per barrel over Singapore quotes
on Tuesday, compared with a premium of 40 cents per barrel in the last trading session on
    The February/March time spread for jet fuel in Singapore traded at a premium
of 26 cents per barrel, down from 38 cents a barrel on Friday, Refinitiv data showed.
    Asian jet fuel demand is taking a beating from an outbreak of a flu-like virus in China that
has led airlines to cancel scores of flights during the peak Lunar New Year travel season.

    Jet fuel prices have dropped and refiners' profits for the product have slumped to the
lowest in more than 2-1/2 years, while industry analysts are cutting their 2020 forecasts for
jet fuel and overall oil demand.
    Airlines and passengers are on guard against the respiratory coronavirus that originated in
the central Chinese city of Wuhan, so far killing more than 100 people in China and spreading to
more than 10 countries, including France, Japan and the United States.
    Passengers have called off travel plans for the Lunar New Year holiday, prompting airlines
to offer refunds.
    Refining margins, also known as cracks, for the aviation fuel were at $9.67 a
barrel over Dubai crude during Asian trading hours on Tuesday, down from $11.59 per barrel on
    Meanwhile, refining margins for gasoil with 10 ppm sulphur content were at
$10.76 per barrel over Dubai crude on Tuesday, compared with $12.49 a barrel on Friday,
according to data on Refinitiv Eikon.
    Cash premiums for 10 ppm gasoil in Singapore GO10-SIN-DIF climbed to 23 cents a barrel to
Singapore quotes on Tuesday, up from 21 cents per barrel on Friday. 
    - One gasoil trade, no jet fuel deals.
    - BP sold 150,000 barrels of 10 ppm gasoil to Trafigura for Feb. 23-27 loading at a premium
of 15 cents a barrel to February Singapore quotes.
    - For more information, click
    - Oil futures fell for a sixth session on Tuesday, as the spread of a new virus in China and
several countries raised concerns about a hit to economic growth and oil demand.
    - Saudi Arabia, the world's top oil exporter, urged caution on Monday against "gloomy
expectations" regarding the possible impact of the spread of the coronavirus on the global
economy and oil demand.
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                66.12    -5.40      -7.55       71.52  GO-SIN
 GO 0.5 Diff                      -2.00    -0.02       1.01       -1.98  GO-SIN-DIF
 Spot Gas Oil 0.25%               66.83    -5.40      -7.48       72.23  GO25-SIN
 GO 0.25 Diff                     -1.29    -0.02       1.57       -1.27  GO25-SIN-DIF
 Spot Gas Oil 0.05%               67.97    -5.40      -7.36       73.37  GO005-SIN
 GO 0.05 Diff                     -0.15    -0.02      15.38       -0.13  GO005-SIN-DIF
 Spot Gas Oil 0.001%              68.35    -5.36      -7.27       73.71  GO10-SIN
 GO 0.001 Diff                     0.23     0.02       9.52        0.21  GO10-SIN-DIF
 Spot Jet/Kero                    67.42    -5.58      -7.64       73.00  JET-SIN
 Jet/Kero Diff                     0.36    -0.04     -10.00        0.40  JET-SIN-DIF
 For a list of derivatives prices, including margins, please double                     
 click the RICs below.                                                   
 Brent M1                                                                               
 Gasoil M1                                                                              
 Gasoil M1/M2                                                                           
 Gasoil M2                                                                              
 Regrade M1                                                                             
 Regrade M2                                                                             
 Jet M1                                                                                 
 Jet M1/M2                                                                              
 Jet M2                                                                                 
 Gasoil 500ppm-Dubai                                                                    
 Cracks M1                                                               
 Gasoil 500ppm-Dubai                                                                    
 Cracks M2                                                               
 Jet Cracks M1                                                                          
 Jet Cracks M2                                                                          
 East-West M1                                                                           
 East-West M2                                                                           
 LGO M1                                                                                 
 LGO M1/M2                                                                              
 LGO M2                                                                                 
 Crack LGO-Brent M1                                                                     
 Crack LGO-Brent M2                                                                     
 (Reporting by Koustav Samanta; Editing by Amy Caren Daniel)
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