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Energy

Asia Distillates-Jet fuel cash differentials rise, time spread narrows

    SINGAPORE, Nov 19 (Reuters) - Asia's cash differentials for jet fuel inched up on Thursday
as the front-month spread narrowed its contango structure, while middle distillate inventories
in Singapore dropped to a two-week low.
    Cash discounts for jet fuel JET-SIN-DIF were at 42 cents a barrel to Singapore quotes,
compared with a 48-cent discount a day earlier.
    The Dec/Jan time spread for the aviation fuel in Singapore traded at a
discount of 32 cents per barrel on Thursday, compared with minus 34 cents per barrel on
Wednesday.
    Although a seasonal uptick in kerosene demand from North Asia has offered some support to
the jet fuel market in recent weeks, the overall near-term outlook for aviation demand remains
bleak due to surging COVID-19 infections in several countries, trade sources said.
    Refining margins or cracks for jet fuel nudged higher by 3 cents to $2.98 per
barrel over Dubai crude during Asian trading hours, partly helped by weaker feedstock crude
prices.
    The jet fuel cracks, which also determine the profitability of closely related kerosene,
have more than doubled over the last month, Refinitiv Eikon data showed.
    
    INVENTORIES
    - Singapore's middle distillate inventories dropped 3% to 16.1 million barrels in the week
to Nov. 18, according to Enterprise Singapore data.
    - Weekly Singapore middle distillate inventories have averaged about 13.7 million barrels so
far in 2020, Reuters calculations showed. This week's stocks were 38.4% higher year-on-year.
    - U.S. distillate stockpiles fell by 5.2 million barrels in the week to Nov. 13, far
exceeding expectations for a 1.5 million-barrel drop, U.S. Energy Information Administration
data showed on Wednesday.
    
    TENDERS
    - Wilmar was seeking 38,000 tonnes of 2,500 ppm gasoil for delivery into Balikpapan,
Indonesia over Dec. 26-30 in a tender scheduled to close on Nov. 18 with a same-day validity,
trade sources said.
    - Indonesia has imported about 82,000 tonnes of gasoil so far in November, having imported
261,000 tonnes of gasoil last month, Refinitiv oil research assessments showed.
    
    SINGAPORE CASH DEALS
    - No jet fuel trades, no gasoil deals
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               47.72     0.28       0.59       47.44  GO-SIN
 GO 0.5 Diff                     -1.13     0.01      -0.88       -1.14  GO-SIN-DIF
 Spot Gas Oil 0.25%              48.07     0.28       0.59       47.79  GO25-SIN
 GO 0.25 Diff                    -0.78     0.01      -1.27       -0.79  GO25-SIN-DIF
 Spot Gas Oil 0.05%              48.32     0.28       0.58       48.04  GO005-SIN
 GO 0.05 Diff                    -0.53     0.01      -1.85       -0.54  GO005-SIN-DIF
 Spot Gas Oil 0.001%             48.71     0.28       0.58       48.43  GO10-SIN
 GO 0.001 Diff                   -0.14     0.01      -6.67       -0.15  GO10-SIN-DIF
 Spot Jet/Kero                   46.33     0.35       0.76       45.98  JET-SIN
 Jet/Kero Diff                   -0.42     0.06     -12.50       -0.48  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 Devika Syamnath)
  
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