Oil report

Asia Distillates-Jet fuel cracks post weekly gain; kerosene demand supports

    SINGAPORE, Oct 9 (Reuters) - Asian refining margins for jet fuel dipped on Friday, but
posted a sixth consecutive weekly gain, buoyed by an uptick in seasonal demand for kerosene on
the back of tighter supplies due to ongoing run cuts at regional refineries.
    Refining profit margins, also known as cracks, for jet fuel slipped 13 cents to
$1.52 per barrel over Dubai crude during Asian trading hours on Friday. The cracks, however,
have gained 16.9% this week.
    Winter months in Northeast Asia, especially Japan, which uses heating kerosene to fend off
chill, typically props up jet fuel refining margins as the fuels belong to the same grade of oil
products with jet margins determining the profitability of both.
    Some weather models are projecting colder-than-normal temperatures in Japan during this
year's winter, and traders hope the seasonal stockpiling of kerosene in Japan and South Korea
would provide a cushion to the jet fuel cracks in coming weeks.
    Although analysts expect the cracks to moderately strengthen over 2021 as countries ease
travel restrictions and more grounded flights return to the skies, market watchers believe jet
fuel margins would still take years to return to pre-pandemic levels.
    Consultancy FGE estimates jet fuel margins to gradually climb to around $6 a barrel over
Dubai crude by the end of 2021. But that would still be about 60% weaker than the 2019 average
of $14.96 per barrel.
    Cash discounts for jet fuel JET-SIN-DIF remained unchanged at 57 cents a barrel to
Singapore quotes on Friday.
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 4.3% to 2.9 million tonnes in the week to Oct. 8, data from Dutch
consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories STK-JET-ARA rose 5.6% to 998,000 tonnes.
    - Compared with a year earlier, ARA gasoil inventories were up 5.8%, while jet fuel stocks
were about 56% higher.
    - One jet fuel trade, no gasoil deals
    - Gasoline exports from China, Asia's top petrol exporter, are set to stay elevated this
month as mounting supplies from recent high crude oil processing runs prompt fuel sellers to
offload cargoes abroad, industry sources said.
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               44.74     0.84       1.91       43.90  GO-SIN
 GO 0.5 Diff                     -1.71     0.01      -0.58       -1.72  GO-SIN-DIF
 Spot Gas Oil 0.25%              45.15     0.84       1.90       44.31  GO25-SIN
 GO 0.25 Diff                    -1.30     0.01      -0.76       -1.31  GO25-SIN-DIF
 Spot Gas Oil 0.05%              45.36     0.84       1.89       44.52  GO005-SIN
 GO 0.05 Diff                    -1.09     0.01      -0.91       -1.10  GO005-SIN-DIF
 Spot Gas Oil 0.001%             45.94     0.83       1.84       45.11  GO10-SIN
 GO 0.001 Diff                   -0.52    -0.01       1.96       -0.51  GO10-SIN-DIF
 Spot Jet/Kero                   43.17     0.57       1.34       42.60  JET-SIN
 Jet/Kero Diff                   -0.57     0.00       0.00       -0.57  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 Shailesh Kuber)