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Asia Distillates-Jet fuel cracks post biggest weekly gain in 2 months

· 02/05/2021 05:46
Asia Distillates-Jet fuel cracks post biggest weekly gain in 2 months

- Asian refining margins for jet fuel rose on Friday, posting their biggest weekly gain in two months, while cash discounts for the aviation fuel narrowed amid limited supplies.

The regional jet fuel market is expected to pick up further strength gradually as countries ease travel restrictions in coming months, although the usual seasonal boost during the Lunar New Year holidays would mostly remain dampened this year, trade sources said.

Refining margins, or cracks, for jet fuel JETSGCKMc1 rose to $4.43 per barrel over Dubai crude during Asian trading hours, the strongest since Jan. 18.

The cracks have gained 25.5% this week, the steepest weekly rise since Dec. 4.

"Our forecast is for traffic to return to half of 2019 levels in 2021," Alexandre de Juniac, director general and chief executive of the International Air Transport Association (IATA) said in a statement this week.

"But the proliferation of restrictions on travel that we have seen since the beginning of the year could make even that modest outlook very challenging," he added.

Global air passenger demand in 2020 was 65.9% lower than 2019 levels, while global air cargo demand last year was about 11% below 2019, IATA data showed on Wednesday.

Some market watchers believe aviation passenger demand might see a surge soon after the majority of travel restrictions are lifted as a lot of people are bored of not travelling.

Cash differentials for jet fuel JET-SIN-DIF were at a discount of 15 cents per barrel to Singapore quotes on Friday, compared with a 21-cent discount a day earlier.


ARA STOCKS

- Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub STK-GO-ARA rose 3.4% to 2.7 million tonnes in the week to Feb. 2, data from Dutch consultancy Insights Global showed. ARA/

- The data showed ARA jet fuel inventories STK-JET-ARA climbed 3.8% to 937,000 tonnes.


TENDERS

- Sri Lanka's Ceylon Petroleum Corp (Ceypetco) is seeking gasoil for delivery into Colombo over the eight months between May and December this year.

ISSUER

GRADE:

VOLUME:

DATE:

CLOSE (VALID)

*Sri Lanka/Ceypetco

BUY: 500ppm gasoil

280KB x 4

May 1-Dec 31, 2021

March 9 (90 Days)

*Sri Lanka/Ceypetco

BUY: 500ppm gasoil

227.5KB x 5

May 1-Dec 31, 2021

March 9 (90 Days)


BUY: 10ppm gasoil

52.5KB x 5

May 1-Dec 31, 2021

March 9 (90 Days)

*Sri Lanka/Ceypetco

BUY: 500ppm gasoil

280KB x 4

May 1-Dec 31, 2021

March 9 (90 Days)


SINGAPORE CASH DEALS O/AS

- One gasoil deal, no jet fuel trades


OTHER NEWS

- Oil hit its highest level in a year on Friday, closing in on $60 a barrel on economic revival hopes and supply curbs by producer group OPEC and its allies. O/R


ASSESSMENTS

MID-DISTILLATES






CASH ($/T)

ASIA CLOSE

Change

% Change

Prev Close

RIC

Spot Gas Oil 0.5%

63.71

0.82

1.30

62.89

GO-SIN

GO 0.5 Diff

-1.6

-0.05

3.23

-1.55

GO-SIN-DIF

Spot Gas Oil 0.25%

63.81

0.82

1.30

62.99

GO25-SIN

GO 0.25 Diff

-1.5

-0.05

3.45

-1.45

GO25-SIN-DIF

Spot Gas Oil 0.05%

64.08

0.82

1.30

63.26

GO005-SIN

GO 0.05 Diff

-1.23

-0.05

4.24

-1.18

GO005-SIN-DIF

Spot Gas Oil 0.001%

65.27

0.85

1.32

64.42

GO10-SIN

GO 0.001 Diff

-0.04

-0.02

100.00

-0.02

GO10-SIN-DIF

Spot Jet/Kero

62.77

0.96

1.55

61.81

JET-SIN

Jet/Kero Diff

-0.15

0.06

-28.57

-0.21

JET-SIN-DIF







For a list of derivatives prices, including margins, please double click the RICs below.



Brent M1

BRENTSGMc1





Gasoil M1

GOSGSWMc1





Gasoil M1/M2

GOSGSPDMc1





Gasoil M2

GOSGSWMc2





Regrade M1

JETREGSGMc1





Regrade M2

JETREGSGMc2





Jet M1

JETSGSWMc1





Jet M1/M2

JETSGSPDMc1





Jet M2

JETSGSWMc2





Gasoil 500ppm-Dubai Cracks M1

GOSGCKMc1





Gasoil 500ppm-Dubai Cracks M2

GOSGCKMc2





Jet Cracks M1

JETSGCKMc1





Jet Cracks M2

JETSGCKMc2





East-West M1

LGOAEFSMc1





East-West M2

LGOAEFSMc2





LGO M1

LGOAMc1





LGO M1/M2

LGOASPDMc1





LGO M2

LGOAMc2





Crack LGO-Brent M1

LGOACKMc1





Crack LGO-Brent M2

LGOACKMc2






(Reporting by Koustav Samanta; editing by Uttaresh.V)

((koustav.samanta@thomsonreuters.com)(+65 6870 3503)(Reuters Messaging: koustav.samanta.thomsonreuters.com@reuters.net))