July 14, 2020 / 11:33 AM / 22 days ago

Asia Distillates-Jet fuel cash discounts narrow, cracks creep higher

    SINGAPORE, July 14 (Reuters) - Asia's cash discounts for jet fuel narrowed on Tuesday as the
contango structure for the prompt month spread tightened, while refining margins for the
aviation fuel edged higher on weaker crude prices.
    Traders remain worried that the aviation market might take longer than expected to recover
as countries maintain border restrictions to prevent a resurgence in coronavirus cases.
    Many parts of Asia are finding cause to pause the reopening of their economies, some after
winning praise for their initial responses to the outbreak.
    Cash discounts for jet fuel JET-SIN-DIF were at 29 cents a barrel to Singapore quotes on
Tuesday, compared with 34 cents per barrel a day earlier.
    The July/August time spread for jet fuel in Singapore traded at a discount of
50 cents a barrel on Tuesday, as against Monday's 60 cents, Refinitiv Eikon data showed.
    The jet market found some support after as flights on some domestic routes were restarted,
but traders said many long-haul international flights remain grounded due to a renewed wave in
COVID-19 infections which is dampening recovery hopes.
    For countries such as Vietnam, which has successfully contained its own outbreak and its
airlines are quickly restoring domestic operations, a ban on international commercial flights
still remains in place.
    Refining margins or cracks for jet fuel were up 15 cents at $1.41 a barrel over
Dubai crude during Asian trade on Tuesday. The cracks have shed 44% in the last three weeks,
Refinitiv data showed.
    
    SINGAPORE CASH DEALS
    - One gasoil deal, no jet fuel trades
    
    OTHER NEWS
    - China's June crude oil imports jumped by a third from the same period a year earlier,
setting a second straight monthly record, as cheap cargoes bought during April's oil price crash
arrived at Chinese ports.
    Customs data showed China's refined oil product exports for June were at 3.87 million
tonnes, a fraction lower than 3.89 million tonnes in May, but down nearly 29% from the same
month last year.
    - ZenRock Commodities Trading Pte Ltd is unlikely to continue its core oil trading
businesses in the long term, its court-appointed supervisor KPMG Services said.

    ASSESSMENTS
 MID-DISTILLATES                                                                          
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                47.85    -0.64      -1.32       48.49  GO-SIN
 GO 0.5 Diff                      -0.80     0.03      -3.61       -0.83  GO-SIN-DIF
 Spot Gas Oil 0.25%               48.49    -0.64      -1.30       49.13  GO25-SIN
 GO 0.25 Diff                     -0.16     0.03     -15.79       -0.19  GO25-SIN-DIF
 Spot Gas Oil 0.05%               49.18    -0.64      -1.28       49.82  GO005-SIN
 GO 0.05 Diff                      0.53     0.03       6.00        0.50  GO005-SIN-DIF
 Spot Gas Oil 0.001%              49.38    -0.61      -1.22       49.99  GO10-SIN
 GO 0.001 Diff                     0.73     0.06       8.96        0.67  GO10-SIN-DIF
 Spot Jet/Kero                    42.74    -0.47      -1.09       43.21  JET-SIN
 Jet/Kero Diff                    -0.29     0.05     -14.71       -0.34  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 Jane Merriman)
  
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