December 17, 2019 / 10:57 AM / a month ago

Asia Distillates-Jet fuel cash premiums drop on ample supply, weak demand

    SINGAPORE, Dec 17 (Reuters) - Asia's cash premiums for jet fuel dropped on Tuesday, weighed
down by abundant supplies and lacklustre aviation demand, while traders were sceptical seasonal
heating demand for kerosene would likely remain weak due to a warmer winter this year.
    Cash differentials for jet fuel JET-SIN-DIF fell to a premium of 5 cents per barrel to
Singapore quotes on Tuesday, down from a 35-cents premium a day earlier.
    Refining profit margins or cracks for jet fuel were at $14.95 per barrel over
Dubai crude during Asian trading hours on Tuesday, compared with $14.76 a barrel on Monday.
    Winter in the northern hemisphere typically brings peak heating demand for kerosene, which
belongs to the same grade of oil products as jet fuel, with jet refining margins determining the
profitability of both.      
    But temperatures in Tokyo are expected to stay well above normal for the next couple of
weeks, while temperatures in Seoul would remain mostly higher than normal over the next 15-day
period, weather forecast models on Refinitiv Eikon showed.
    Meanwhile, cracks for gasoil with 10 parts per million (ppm) sulphur content
rose to $15.60 per barrel over Dubai crude on Tuesday, their highest in a month. Cracks for the
benchmark gasoil grade in Singapore were at $15.01 per barrel on Monday. 
    Cash premiums for 10ppm gasoil GO10-SIN-DIF climbed to 65 cents per barrel over Singapore
quotes on Tuesday, up from 60 cents per barrel in the previous session.
    
    TENDERS
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering 40,000 tonnes of jet
fuel for loading over Jan. 27-29 from the port of New Mangalore.
    - The tender closes on Dec. 18 and will remain valid until Dec. 19.
    - For more such information, please click
    
    SINGAPORE CASH DEALS
    - No gasoil trades, one jet fuel deal.
    - Singapore trader Hin Leong bought 100,000 barrels of jet fuel from Shell for Jan. 8-12
loading at a discount of 20 cents barrel to Singapore quotes.
    - For more information, please click
    
    OTHER NEWS
    - Oil prices trickled a fraction lower on Tuesday but remained near a three-month high as
investors kept the faith with hopes that a fully fledged U.S.-China trade deal is in the
pipeline and set to stoke oil demand in the world's biggest economies.
    - U.S. oil output from seven major shale formations is expected to rise about 29,000 barrels
per day (bpd) in January to a record 9.14 million bpd, the U.S. Energy Information
Administration said in a monthly forecast on Monday.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                77.61     0.91       1.19       76.70  GO-SIN
 GO 0.5 Diff                      -2.16     0.05      -2.26       -2.21  GO-SIN-DIF
 Spot Gas Oil 0.25%               78.21     0.91       1.18       77.30  GO25-SIN
 GO 0.25 Diff                     -1.56     0.05      -3.11       -1.61  GO25-SIN-DIF
 Spot Gas Oil 0.05%               79.43     0.88       1.12       78.55  GO005-SIN
 GO 0.05 Diff                     -0.34     0.02      -5.56       -0.36  GO005-SIN-DIF
 Spot Gas Oil 0.001%              80.43     0.92       1.16       79.51  GO10-SIN
 GO 0.001 Diff                     0.65     0.05       8.33        0.60  GO10-SIN-DIF
 Spot Jet/Kero                    79.15     0.15       0.19       79.00  JET-SIN
 Jet/Kero Diff                     0.05    -0.30     -85.71        0.35  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 Robert Birsel)
  
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