January 17, 2020 / 10:36 AM / a month ago

Asia Distillates-Jet fuel cash premiums rise, cracks hover near multi-month low

    SINGAPORE, Jan 17 (Reuters) - Asia's cash premiums for jet fuel rose on Friday, due to a
slight uptick in buying interest for physical cargoes, while refining margins for the aviation
fuel lingered close to their lowest levels in more than eight months.
    Cash premiums for jet fuel JET-SIN-DIF climbed to 19 cents a barrel over Singapore quotes,
compared with 13 cents per barrel a day earlier.
    Refining margins, or cracks for jet fuel, which also determine the
profitability of closely-related kerosene, edged up to $11.86 per barrel over Dubai crude. The
cracks dropped to $11.64 per barrel on Thursday to hit their lowest level since late April.
    Jet cracks have dropped 7% this week, and are at their weakest January level since 2016,
according to Refinitiv data.
    The jet fuel market has been weighed down by weakness in the aviation sector and a drop in
the use of heating kerosene due to a milder winter in Northeast Asia this year.
    The February/March spread for jet fuel in Singapore widened marginally on
Friday to trade at a premium of 15 cents per barrel, 1 cent higher than Thursday, Refinitiv
Eikon data showed.
    Meanwhile, refining margins for gasoil with 10 ppm sulphur content rose to
$12.41 per barrel over Dubai crude from Thursday's $12.27 per barrel.
    Cash premiums for 10 ppm gasoil GO10-SIN-DIF fell to 17 cents per barrel over Singapore
quotes, compared with 27 cents a barrel on Thursday.
    
    CHINA CRUDE RUNS HIT RECORD HIGHS
    - China's crude oil throughput rose to a record high in 2019 following the start-up of two
mega-refineries, official data showed, with December posting the highest daily run-rate on
record.
    - The total amount of oil processed for the year reached 651.98 million tonnes, or about
13.04 million barrels per day (bpd), according to Reuters calculations, up 7.6% from 2018,
National Bureau of Statistics figures showed.
    - Refinery runs in December came in at 58.51 million tonnes, or about 13.78 million barrels
per day (bpd), up from 12.07 million bpd a year ago.
    - China added 28.5 million tonnes of new refining capacity in 2019 from mega-sized
integrated refining plants, taking its total crude throughput capacity to 860 million tonnes.
    
    ARA STOCKS
    - Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 0.1% to 2.6 million tonnes in the week to Jan. 16, data from Dutch
consultancy Insights Global showed.
    - ARA jet fuel inventories STK-JET-ARA rose 5.7% to 595,000 tonnes, the data showed.
    - Compared with a year earlier, jet fuel stocks were 2.1% lower, while gasoil inventories
were up 23%.
    
    SINGAPORE CASH DEALS
    - Seven gasoil trades, no jet fuel deals.
    - For more information, click
    
    OTHER NEWS
    - U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and
the Baltic states as they take advantage of new shipping rules that have cut demand for the
dirtier marine fuel, according to oil traders and shipping data.
    - Oil prices were steady on Friday as reports of sluggish economic growth in China, the
world's biggest crude importer, raised concerns about fuel demand which countered optimism from
the signing of a Sino-U.S. trade deal this week.

    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                73.52     0.17       0.23       73.35  GO-SIN
 GO 0.5 Diff                      -2.12     0.01      -0.47       -2.13  GO-SIN-DIF
 Spot Gas Oil 0.25%               74.23     0.17       0.23       74.06  GO25-SIN
 GO 0.25 Diff                     -1.41     0.01      -0.70       -1.42  GO25-SIN-DIF
 Spot Gas Oil 0.05%               75.37     0.17       0.23       75.20  GO005-SIN
 GO 0.05 Diff                     -0.27     0.01      -3.57       -0.28  GO005-SIN-DIF
 Spot Gas Oil 0.001%              75.82     0.06       0.08       75.76  GO10-SIN
 GO 0.001 Diff                     0.17    -0.10     -37.04        0.27  GO10-SIN-DIF
 Spot Jet/Kero                    75.27     0.30       0.40       74.97  JET-SIN
 Jet/Kero Diff                     0.19     0.06      46.15        0.13  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;)
  
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