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Oil report

Asia Distillates-Jet fuel cracks linger close to multi-month highs

    SINGAPORE, Nov 12 (Reuters) - Asian refining margins for jet fuel eased on Thursday, but
remained close to multi-month highs touched earlier in the week, thanks to winter heating demand
for kerosene and hopes for improving aviation demand on domestic routes.
    Refining margins or cracks for jet fuel in Singapore dropped to $2.91 per
barrel over Dubai crude during Asian trade, down from a more than seven-month high of $3.63 per
barrel a day earlier.
    Cracks for the aviation fuel, which also determine the profitability of closely-related
kerosene, have gained 86.5% over the last four weeks.
    "The modest resurgence in jet fuel in recent weeks appears to be being driven by seasonal
stockpiling efforts of large markets such as Japan and South Korea, ahead of what is expected to
be a colder-than-normal winter," said Peter Lee, senior oil and gas analyst at Fitch Solutions.
    "Both markets still deploy jet kerosene for residential, commercial heating purposes."
    Cash discounts for jet fuel JET-SIN-DIF were at 42 cents a barrel to Singapore quotes on
Thursday, compared with a discount of 24 cents per barrel a day earlier.
    Meanwhile, gasoil cargoes in Asia were being sold at the narrowest cash discounts in three
months this week, although industry sources said the market's strength would be transient as
Europe's demand is under pressure from renewed coronavirus lockdowns.
    Cash differentials for the benchmark gasoil grade with 10 ppm of sulphur in Singapore
GO10-SIN-DIF were at a discount of 15 cents a barrel to Singapore quotes on Thursday.
    
    SINGAPORE MIDDLE DISTILLATE STOCKS SURGE TO HIGHEST IN OVER A DECADE
    - Singapore's middle distillate inventories soared 10.9% to their highest in more than a
decade in the week ended Nov. 11, official data showed on Thursday. The stocks jumped 1.636
million barrels to 16.585 million barrels, according to Enterprise Singapore data.
    - The current stock levels STKMD-SIN were last seen on Aug. 11, 2010, when they touched a
record high of 16.662 million barrels.

    SINGAPORE CASH DEALS
    - One jet fuel trade, no gasoil deals
    
    ASSESSMENTS
 MID-DISTILLATES                                                                           
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%                 47.11    -1.12      -2.32        48.23  GO-SIN
 GO 0.5 Diff                       -1.13    -0.01       0.89        -1.12  GO-SIN-DIF
 Spot Gas Oil 0.25%                47.49    -1.12      -2.30        48.61  GO25-SIN
 GO 0.25 Diff                      -0.75    -0.01       1.35        -0.74  GO25-SIN-DIF
 Spot Gas Oil 0.05%                47.73    -1.13      -2.31        48.86  GO005-SIN
 GO 0.05 Diff                      -0.51    -0.02       4.08        -0.49  GO005-SIN-DIF
 Spot Gas Oil 0.001%               48.08    -1.11      -2.26        49.19  GO10-SIN
 GO 0.001 Diff                     -0.15     0.01      -6.25        -0.16  GO10-SIN-DIF
 Spot Jet/Kero                     46.05    -1.33      -2.81        47.38  JET-SIN
 Jet/Kero Diff                     -0.42    -0.18      75.00        -0.24  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 Amy Caren Daniel)
  
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