June 22, 2020 / 10:59 AM / 21 days ago

Asia Distillates-Jet cash discounts narrow as aviation demand gathers pace

    SINGAPORE, June 22 (Reuters) - Asia's cash discounts for jet fuel narrowed on Monday, as
front-month spread for the aviation fuel slimmed its contango, buoyed by an uptick in demand
with airlines increasing the number of flights especially on domestic routes as countries ease
coronavirus-led containment measures.
    Cash discounts for jet fuel JET-SIN-DIF narrowed to 64 cents a barrel to Singapore quotes
on Monday, compared with a discount of 70 cents on Friday.
    The July/August time-spread for jet fuel in Singapore traded at a discount of
45 cents per barrel on Monday, compared with 58 cents in the previous session.
    Air passenger demand, however, is expected to remain lacklustre for a prolonged period of
time as travellers continue to stay away from flying in order to avoid quarantine periods, trade
sources said.
    Refining margins, also known as cracks, for jet fuel were at $3.42 a barrel
over Dubai crude during Asian trading hours on Monday, 62 cents higher from Friday.
    Meanwhile, cracks for gasoil with 10-ppm sulphur content inched up 12 cents to
$6.72 a barrel over Dubai crude on Monday.
    Cash premiums for 10-ppm gasoil GO10-SIN-DIF slipped to 75 cents a barrel to Singapore
quotes on Monday, compared with a 90-cent premium at the end of last week.
    
    INDIA FUEL EXPORTS
    - India's diesel exports dropped 18% to 2.79 million tonnes in May, down from 3.4 million
tonnes in April, government data showed. The May exports, however, were nearly 33% higher
compared with the same month a year ago.
    - The country exported about 300,000 tonnes of jet fuel in May, compared with 440,000 tonnes
in April and 470,000 tonnes in May 2019, the data showed.
    
    SINGAPORE CASH DEALS
    - Two jet fuel trades, no gasoil deal
    
    OTHER NEWS
    - China's marine fuel futures contract that debuts on Monday on the Shanghai International
Energy Exchange (INE) is likely to attract strong interest, despite weakened ship fuel demand
amid the coronavirus pandemic, industry participants said.
    - Oil prices were steady on Monday, supported by tighter supplies from major producers but
held in check by concerns over a record rise in coronavirus infections worldwide that could
stall a recovery in fuel demand.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               47.10    -0.72      -1.51       47.82  GO-SIN
 GO 0.5 Diff                     -1.11    -0.06       5.71       -1.05  GO-SIN-DIF
 Spot Gas Oil 0.25%              47.74    -0.88      -1.81       48.62  GO25-SIN
 GO 0.25 Diff                    -0.47    -0.22      88.00       -0.25  GO25-SIN-DIF
 Spot Gas Oil 0.05%              48.65    -0.87      -1.76       49.52  GO005-SIN
 GO 0.05 Diff                     0.44    -0.21     -32.31        0.65  GO005-SIN-DIF
 Spot Gas Oil 0.001%             48.96    -0.81      -1.63       49.77  GO10-SIN
 GO 0.001 Diff                    0.75    -0.15     -16.67        0.90  GO10-SIN-DIF
 Spot Jet/Kero                   44.24    -0.02      -0.05       44.26  JET-SIN
 Jet/Kero Diff                   -0.64     0.06      -8.57       -0.70  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 Sherry Jacob-Phillips)
  
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