Oil report

Asia Distillates-Jet fuel cracks climb to near 8-week high

    SINGAPORE, Oct 1 (Reuters) - Asian refining margins for jet fuel rose to their strongest in
nearly two months on Thursday as run cuts at regional refineries reined in excess supplies and
traders hoped that winter heating demand for kerosene would provide some support to the ailing
    Winter months in Northeast Asia, where kerosene is used for heating, typically boost jet
margins as the fuels belong to the same grade of oil products.
    Refining margins or cracks for jet fuel in Singapore, which flipped to a
positive territory in the previous session, rose by 50 cents on Thursday to 66 cents per barrel
over Dubai crude during Asian trading hours.
    "It's upcoming winter season soon ... Japan/South Korea should be starting to stock up
kerosene," a Singapore-based trader said.
    "Currently, jet/kerosene exports from (regional) refineries are relatively low due to low
runs. Hence, that is showing some support in the prices," he added.
    - Singapore's middle distillate inventories dropped 2.5% to a two-week low of 15.3 million
barrels in the week to Sept. 30, according to Enterprise Singapore data.
    - Weekly Singapore middle distillate inventories have averaged about 13.4 million barrels so
far in 2020, Reuters calculations showed. This week's stocks were 23.2% higher year-on-year.
    - U.S. distillate stockpiles fell by 3.2 million barrels in the week to Sept. 25, versus
expectations for a 917,000-barrel drop, the U.S. Energy Information Administration data showed
on Wednesday.
    - Indian state refiners' annual gasoline sales rose to pre-COVID levels in September and a
fall in diesel sales slowed, as the loosening of lockdown restrictions boosted energy
consumption and economic activity, provisional industry data showed.
    - Gasoil sales were at 4.84 million tonnes, down 7.3% from a year ago, but up 22% from
August, according to data provided by the country's top refiner Indian Oil Corp.
    - Jet fuel sales last month rose 23.4% from August to about 290,000 tonnes, but fell 53%
from a year ago as curbs on air travel remained in place. 
    - One jet fuel trade, no gasoil deals
    - Japan's gasoline imports jumped 27.3% in August from a year earlier due to cheaper
overseas prices and tighter local supply as refiners kept run rates low amid slumping demand for
jet fuel, the Ministry of Economy, Trade and Industry (METI) said on Wednesday.
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 42.96     0.91       2.16       42.05  GO-SIN
 GO 0.5 Diff                       -1.95    -0.05       2.63       -1.90  GO-SIN-DIF
 Spot Gas Oil 0.25%                43.36     0.91       2.14       42.45  GO25-SIN
 GO 0.25 Diff                      -1.55    -0.05       3.33       -1.50  GO25-SIN-DIF
 Spot Gas Oil 0.05%                43.78     0.91       2.12       42.87  GO005-SIN
 GO 0.05 Diff                      -1.13    -0.05       4.63       -1.08  GO005-SIN-DIF
 Spot Gas Oil 0.001%               44.33     0.91       2.10       43.42  GO10-SIN
 GO 0.001 Diff                     -0.58    -0.05       9.43       -0.53  GO10-SIN-DIF
 Spot Jet/Kero                     41.66     1.63       4.07       40.03  JET-SIN
 Jet/Kero Diff                     -0.87     0.16     -15.53       -1.03  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 Aditya Soni)