November 26, 2019 / 11:04 AM / 18 days ago

Asia Distillates-Jet fuel cracks linger near more than 5-month low

    SINGAPORE, Nov 26 (Reuters) - Asian refining margins for jet fuel rose on Tuesday, but
stayed close to a more than five-month low touched in the previous session, while cash
differentials for the fuel inched lower amid muted buying interest for physical cargoes. 
    Refining margins or cracks for jet fuel rose to $14.21 per barrel over Dubai
crude during Asian trading hours. On Monday, the cracks had fallen to $13.62 per barrel, the
lowest level since June 11.
    Over the last one month, refining profit margins for the fuel have dropped about 17%, hurt
by weak demand from the aviation sector, while traders said stockpiling for closely related
kerosene has not quite taken off amid expectations for a warmer winter this year.
    Kerosene and jet fuel belong to the same grade of oil products, with jet fuel margins
determining the profitability of both.
    Cash differentials for jet fuel JET-SIN-DIF were at a discount of 62 cents per barrel to
Singapore quotes on Tuesday, compared with a discount of 61 cents a day earlier.
    Meanwhile, cash premiums for gasoil with 10 ppm sulphur content GO10-SIN-DIF rose to 16
cents a barrel to Singapore quotes on Tuesday versus a 14-cent premium a day earlier.
    Cracks for 10 ppm gasoil rose to $14.66 a barrel over Dubai crude on Tuesday,
up from $13.97 on Monday.
    
    TENDERS
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering to sell 40,000
tonnes of jet fuel for loading over Dec. 27-29 from the port of New Mangalore.
    - The tender closes on Dec. 4 and will remain valid until Dec. 5.
    - For more such information, please click
    
    SINGAPORE CASH DEALS
    - Two gasoil trades, no jet fuel deals.
    - Singapore trader Hin Leong bought 150,000 barrels of 10 ppm gasoil from BP for Dec. 22-26
loading at a premium of 10 cents a barrel to December Singapore quotes.
    - BP sold another 150,000 barrels of 10 ppm gasoil to Hin Leong for Dec. 16-20 loading at a
premium of 20 cents a barrel to Singapore quotes.
    - For more information, please click
    
    OTHER NEWS
    - Oil prices were steady on Tuesday, hanging onto gains from the previous session, after
comments from the United States and China kept alive hopes that the world's two largest
economies are soon to agree on ending their trade war.
    - Russia's top oil producer Rosneft sold ESPO Blend crude ESPO-DUB cargoes loading
in the first half of January at premiums of around $7 a barrel to Dubai quotes last week, trade
sources said on Tuesday.
    
    ASSESSMENTS
    
 MID-DISTILLATES                                                                           
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 72.91     0.23       0.32       72.68  GO-SIN
 GO 0.5 Diff                       -3.28     0.00       0.00       -3.28  GO-SIN-DIF
 Spot Gas Oil 0.25%                73.29     0.32       0.44       72.97  GO25-SIN
 GO 0.25 Diff                      -2.90     0.09      -3.01       -2.99  GO25-SIN-DIF
 Spot Gas Oil 0.05%                75.82     0.23       0.30       75.59  GO005-SIN
 GO 0.05 Diff                      -0.37     0.00       0.00       -0.37  GO005-SIN-DIF
 Spot Gas Oil 0.001%               76.34     0.24       0.32       76.10  GO10-SIN
 GO 0.001 Diff                      0.16     0.02      14.29        0.14  GO10-SIN-DIF
 Spot Jet/Kero                     75.14     0.12       0.16       75.02  JET-SIN
 Jet/Kero Diff                     -0.62    -0.01       1.64       -0.61  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 Shinjini Ganguli)
  
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