Oil report

Asia Distillates-Jet fuel cash differentials drop, cracks post weekly decline

    SINGAPORE, Nov 13 (Reuters) - Asia's cash differentials for jet fuel dropped for a fourth
consecutive session on Friday, while the prompt-month time spread for the aviation fuel in
Singapore widened its contango structure.
    Cash discounts for jet fuel JET-SIN-DIF were at 47 cents a barrel to Singapore quotes, the
widest since Nov. 2. They were at a discount of 42 cents per barrel a day earlier.
    The November/December time spread for jet fuel traded at a discount of 48
cents a barrel on Friday, compared with minus 34 cents on Thursday.
    The jet fuel market has found some support as demand for closely-related kerosene picked up
ahead of winter months in Japan, which uses the fuel for residential heating during the cold
    But as a majority of international flights still remain grounded due to coronavirus
restrictions, market watchers are keeping a close eye on domestic aviation demand and travel
agreements between countries.
    "International flights still remain a no-go for the most part, although there has been a
slow recovery in domestic travel, next to talks about travel bubbles being negotiated among
'lower-risk' markets," said Peter Lee, senior oil and gas analyst at Fitch Solutions.
    Refining profit margins, also known as cracks, for jet fuel dipped on Friday to
$2.76 per barrel over Dubai crude during Asian trading hours, down from $2.91 per barrel a day
    The cracks have shed 1.8% this week, their first weekly decline in three, Refinitiv Eikon
data showed.
    Energy consultancy FGE expects Singapore kero/jet cracks to hover around $1-$2 per barrel
over the winter.
    - Jet fuel stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-JET-ARA dropped 4.4% to 1.2 million tonnes in the week to Nov. 12, data from
Dutch consultancy Insights Global showed.
    - The data showed ARA gasoil inventories STK-GO-ARA dropped 2.8% to 2.6 million tonnes.
    - No jet fuel trade, no gasoil deals
    - India's fuel consumption in October registered its first year-on-year increase since
February, as slowing coronavirus cases and increased mobility accelerated an economic recovery,
data showed on Thursday.
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%                46.13    -0.98      -2.08        47.11  GO-SIN
 GO 0.5 Diff                      -1.14    -0.01       0.88        -1.13  GO-SIN-DIF
 Spot Gas Oil 0.25%               46.51    -0.98      -2.06        47.49  GO25-SIN
 GO 0.25 Diff                     -0.76    -0.01       1.33        -0.75  GO25-SIN-DIF
 Spot Gas Oil 0.05%               46.75    -0.98      -2.05        47.73  GO005-SIN
 GO 0.05 Diff                     -0.52    -0.01       1.96        -0.51  GO005-SIN-DIF
 Spot Gas Oil 0.001%              47.10    -0.98      -2.04        48.08  GO10-SIN
 GO 0.001 Diff                    -0.17    -0.02      13.33        -0.15  GO10-SIN-DIF
 Spot Jet/Kero                    44.75    -1.30      -2.82        46.05  JET-SIN
 Jet/Kero Diff                    -0.47    -0.05      11.90        -0.42  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 Krishna Chandra Eluri)