December 27, 2019 / 10:50 AM / a month ago

Asia Distillates-Jet fuel refining margins post biggest weekly drop in five

    SINGAPORE, Dec 27 (Reuters) - Asian refining margins for jet fuel inched lower on Friday,
posting their biggest weekly decline in five weeks, as the market grappled with ample supplies
amid sloppy demand. 
    Refining margins or cracks for jet fuel fell 20 cents to $14.22 per barrel over
Dubai crude during Asian trading hours on Friday.
    The jet fuel cracks dropped 6% this week in their biggest weekly decline since the week
ended Nov. 22, Refinitiv Eikon data showed. The jet refining margins also determine the
profitability of closely-related kerosene.
    But a mild winter so far this year in Japan, which uses kerosene for heating up properties
to fend off chilly weather, has resulted in weaker seasonal demand for the fuel, trade sources
said.
    Winter in the Northern hemisphere usually brings peak heating demand for kerosene, but
temperatures in Tokyo are expected to stay mostly above normal for the next couple of weeks,
weather forecast models on Refinitiv Eikon showed.
    Cash differentials for jet fuel JET-SIN-DIF rose to a premium of 27 cents per barrel to
Singapore quotes, thanks to three firmer deals in the physical trade window on Friday. They were
at a premium of 6 cents on Thursday.
    Meanwhile, cash premiums for 10 ppm gasoil GO10-SIN-DIF rose to 91 cents per barrel over
Singapore quotes, up from 75 cents per barrel a day earlier.
    Refining profit margins for gasoil with 10 ppm sulphur content climbed 25
cents to $15.67 per barrel over Dubai crude on Friday.

    SINGAPORE CASH DEALS
    - Three jet fuel trades, no gasoil deals.
    - Unipec sold 100,000 barrels of jet fuel to Singapore trader Hin Leong for Jan. 11-15
loading at a premium of 30 cents a barrel to Singapore quotes.
    - Chevron sold 100,000 barrels of jet fuel to Hin Leong for Jan. 16-20 loading at a premium
of 25 cents a barrel to Singapore quotes.
    - Shell sold another 100,000 barrels of jet fuel to Hin Leong for Jan. 11-15 loading at a
premium of 30 cents a barrel to Singapore quotes.
    - For more information, please click
    
    OTHER NEWS
    - Oil prices rose on Friday, hitting three-month highs after data showed record online
spending by U.S. consumers, stoking faith in the world's no. 1 economy even before the hoped-for
end to the trade war between Washington and Beijing.
    - Japan will send a warship and patrol planes to protect Japanese ships in the Middle East
as the situation in the region, from which it sources nearly 90% of its crude oil imports,
remains volatile, Japan's top government spokesman said.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               79.99     0.89       1.13       79.10  GO-SIN
 GO 0.5 Diff                     -2.11     0.05      -2.31       -2.16  GO-SIN-DIF
 Spot Gas Oil 0.25%              80.60     0.89       1.12       79.71  GO25-SIN
 GO 0.25 Diff                    -1.50     0.05      -3.23       -1.55  GO25-SIN-DIF
 Spot Gas Oil 0.05%              81.88     0.89       1.10       80.99  GO005-SIN
 GO 0.05 Diff                    -0.22     0.05     -18.52       -0.27  GO005-SIN-DIF
 Spot Gas Oil 0.001%             83.01     1.00       1.22       82.01  GO10-SIN
 GO 0.001 Diff                    0.91     0.16      21.33        0.75  GO10-SIN-DIF
 Spot Jet/Kero                   80.95     0.61       0.76       80.34  JET-SIN
 Jet/Kero Diff                    0.27     0.21     350.00        0.06  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 Uttaresh.V)
  
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