June 19, 2020 / 11:43 AM / 23 days ago

Asia Distillates-Jet fuel cracks post weekly gain amid lukewarm demand

    SINGAPORE, June 19 (Reuters) - Asian refining margins for jet fuel posted their third
straight weekly gain, while cash discounts narrowed on Friday, as regional airlines resume more
flights with governments increasingly relaxing coronavirus-led travel curbs.
    Refining margins or cracks for jet fuel were at $2.80 a barrel over Dubai crude
during Asian trading hours, down from $3.27 per barrel a day earlier, but posted a weekly
increase of 12.9%.
    Cash discounts for jet fuel JET-SIN-DIF narrowed to 70 cents a barrel to Singapore quotes
on Friday, compared with a 74-cent discount on Thursday.
    The jet cracks have gained nearly nine times in the last two weeks, but the overall recovery
for the aviation sector is expected to be slow as many passengers continue to refrain from
travelling to avoid quarantine measures, trade sources said.
    Japan lifted all coronavirus-related curbs on domestic travel on Friday, with its two big
airlines, ANA Holdings and Japan Airlines Co., planning to restart operations
even as they expect July flight schedules to be only half of what they had planned before the
COVID-19 pandemic.
    Meanwhile, refining profits for gasoil with 10-ppm sulphur content dropped 68
cents to $6.60 a barrel over Dubai crude on Friday. The gasoil cracks, however, posted a weekly
gain of 13.4%.
    Cash premiums for 10-ppm gasoil GO10-SIN-DIF dipped 7 cents to 90 a barrel to Singapore
quotes on Friday.
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 1.5% to 2.89 million tonnes in the week to June 18, the highest
since August 2019, data from Dutch consultancy Insights Global showed.
    - ARA jet fuel inventories STK-JET-ARA dropped 2.5% to 879,000 tonnes, the data showed.
    - Compared with a year earlier, jet fuel stocks were 4.5% higher, while gasoil inventories
were up 2.8%.

    - No jet fuel trades, one gasoil deal
    -  A second and final trio of ships used as floating storage tanks for gasoline is en route
to unload cargoes in Indonesia, Sri Lanka and Malaysia, according to industry sources and
shipping data, showing fuel demand is growing across Asia.
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 47.82     1.94       4.23       45.88  GO-SIN
 GO 0.5 Diff                       -1.05     0.12     -10.26       -1.17  GO-SIN-DIF
 Spot Gas Oil 0.25%                48.62     1.84       3.93       46.78  GO25-SIN
 GO 0.25 Diff                      -0.25     0.02      -7.41       -0.27  GO25-SIN-DIF
 Spot Gas Oil 0.05%                49.52     1.83       3.84       47.69  GO005-SIN
 GO 0.05 Diff                       0.65     0.01       1.56        0.64  GO005-SIN-DIF
 Spot Gas Oil 0.001%               49.77     1.75       3.64       48.02  GO10-SIN
 GO 0.001 Diff                      0.90    -0.07      -7.22        0.97  GO10-SIN-DIF
 Spot Jet/Kero                     44.26     2.11       5.01       42.15  JET-SIN
 Jet/Kero Diff                     -0.70     0.04      -5.41       -0.74  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 Ramakrishnan M.)
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