SINGAPORE, Dec 20 (Reuters) - Asia's cash differentials for jet fuel narrowed their discounts marginally on Friday, but posted their biggest weekly drop in 1-1/2 months, hurt by muted demand amid adequate supplies. Cash discounts for jet fuelwere at 11 cents per barrel to Singapore quotes, compared with a discount of 12 cents a barrel on Thursday. The cash differentials for aviation fuel, however, have dropped about 128% this week as they flipped into discounts on Wednesday. Traders were concerned winter heating demand for kerosene, which belongs to the same grade of oil products as jet fuel, would likely remain weak due to warmer-than-usual temperatures this year. Refining margins or cracks of jet fuel, which also determines the profitability of closely-related kerosene, were at $15.09 per barrel over Dubai crude during Asian trading hours, compared with $14.72 per barrel a day earlier. "The latest jet demand data has been poor, and mild weather in Asia is adding to the downward pressure on jet markets despite lower crude runs thus far," consultancy Energy Aspects said in its December note. Winter in the Northern hemisphere typically brings strong heating demand for kerosene, especially in Japan, but temperatures in Tokyo are expected to stay mostly above normal for the next couple of weeks, weather forecast models on Refinitiv Eikon showed. "Some support will come from winter kerosene heating demand eventually surfacing in North Asia and peak air transport demand taking place in China over Lunar New Year, although weak passenger and freight growth will create substantial headwinds," Energy Aspects added. Meanwhile, refining margins for gasoil with 10 ppm sulphur content rose to $15.52 per barrel over Dubai crude on Friday, up from $15.20 a barrel on Thursday. Cash premiums for 10ppm gasoil were at 77 cents per barrel over Singapore quotes, up from Thursday's 74 cents per barrel. CLEAN SHIPPING FUEL RULES AND POLICING - Sweeping new fuel rules aiming to cut pollution belching from ships and save lives are now just a couple of weeks away but with no central policing agency and several countries still not signed up to them, compliance is a major concern. - From January 2020, ships must use fuel with a sulphur content of 0.5%, down from 3.5%, or install devices that strip out the toxic pollutant - known as scrubbers. - But enforcement of the United Nations convention on cleaner fuels — known as MARPOL Annex VI — rests with individual countries and flag states, meaning for some routes and regions, compliance is already looking patchy. INDIA CUTS 2019/20 FUEL DEMAND ESTIMATES - India's fuel demand is expected to rise 1.3% in 2019-20, its slowest pace in six years, with the petroleum ministry on Thursday revising down its initial projections amid a broader economic slowdown. - Fuel consumption — a proxy for oil demand — in India is seen at 216 million tonnes in the fiscal year to March 2020, about 3.3 million tonnes lower than initial estimates, the data posted on the Petroleum Planning and Analysis Cell showed. - A sharp reduction in diesel consumption — about two-fifths of overall refined fuel demand, and directly linked to industrial activity — has dragged down the country's overall refined fuel demand in this fiscal year. ARA STOCKS - Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub slipped 1.7% to 2.4 million tonnes in the week to Dec. 19, data from Dutch consultancy Insights Global showed. - Gasoil stocks fell as demand from inland locations was steady. - ARA jet fuel inventories fell 7% to 629,000 tonnes, the data showed. - Compared with a year earlier, jet fuel stocks were 5.2% higher, while gasoil inventories were up 14.3%. SINGAPORE CASH DEALS - Two gasoil trades, no jet fuel deals. - For more information, please click OTHER NEWS - Oil prices held steady near three-month highs, heading for a third consecutive weekly rise, on the back of easing Sino-U.S. trade tensions that have weighed on demand as well as the global economic growth outlook. - Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell, Germany's Uniper and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 78.62 1.06 1.37 77.56 GO 0.5 Diff -2.28 0.01 -0.44 -2.29 Spot Gas Oil 0.25% 79.22 1.06 1.36 78.16 GO 0.25 Diff -1.68 0.01 -0.59 -1.69 Spot Gas Oil 0.05% 80.44 1.05 1.32 79.39 GO 0.05 Diff -0.46 0.00 0.00 -0.46 Spot Gas Oil 0.001% 81.67 1.08 1.34 80.59 GO 0.001 Diff 0.77 0.03 4.05 0.74 Spot Jet/Kero 80.19 0.96 1.21 79.23 Jet/Kero Diff -0.11 0.01 -8.33 -0.12 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 Uttaresh.V)
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