May 18, 2020 / 10:57 AM / 10 days ago

Asia Distillates-Jet cash discounts narrow on slight uptick in buying interest

    SINGAPORE, May 18 (Reuters) - Asia's cash differentials for jet fuel narrowed their
discounts on Monday, helped by firmer buying interests for physical cargoes as China's aviation
demand slowly recovers from the coronavirus outbreak.
    Cash discounts for jet fuel JET-SIN-DIF were at $2.09 a barrel to Singapore quotes on
Monday, compared with a discount of $2.20 a barrel on Friday.
    China's passenger numbers fell 68.5% in April from a year ago to 16.72 million, the aviation
regulator said last week. That compared with a decline of 71.7% year-on-year in March, when
passengers numbered 15.13 million.
    The aviation fuel market, however, is expected to remain under pressure over the next few
months as passengers avoid travelling due to the quarantine measures to contain the spread of
the COVID-19 pandemic even after border restrictions are lifted.
    "I think as long as countries slap visitors a 14-day quarantine period, nobody wants to
travel," a Singapore-based trader said.
    "Holiday visitors won't come back until end of the year or early next year... But if a
vaccine is available before that, that may boost some demand," she added.
    Refining margins, also known as cracks, for jet fuel were at a discount of 87
cents a barrel to Dubai crude during Asian trading hours, compared with a discount of 50 cents
per barrel on Friday.
    Meanwhile, refining margins for gasoil with 10 ppm sulphur content climbed to
$4.93 a barrel over Dubai crude on Monday, compared with Friday's $3.45 per barrel.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF narrowed to $1.06 per barrel to Singapore
quotes on Monday, as against $1.17 per barrel on Friday.
    - India Oil Corp, the country's top refiner, is close to winning its first contract
to supply diesel, jet fuel and gasoline in the second half of this year to state-run Bangladesh
Petroleum Corp, two sources with knowledge of the matter said.
    - IOC mostly stays away from participating in the term tenders for fuel exports as the
refiner sells most of its fuel in the local market, besides supplying its retail outlets in
Nepal and Bhutan.
    - BPC had sought bids for imports of 870,000 tonnes of gasoil with sulphur content of no
more than 500 parts per million (ppm), 120,000 tonnes of jet fuel, 20,000 tonnes of
180-centistoke high sulphur fuel oil and 30,000 tonnes of 95-octane gasoline in a tender issued
this month.
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) has offered 40,000 tonnes of jet
fuel for June 12-14 loading from the port of New Mangalore.
    - The tender closes on May 21 and has a same-day validity.
    - For more such information, please click
    - No jet fuel trades, no gasoil deals
    - For more information, click
    - Oil prices climbed by more than $1 a barrel on Monday, supported by output cuts and signs
of a gradual recovery in demand amid easing coronavirus curbs, with U.S. oil showing no signs of
last month's contract expiry price rout.
    - A month after sellers had to pay nearly $40 a barrel to get rid of U.S. oil futures, the
next watershed moment looms with the expiry of the June contract on Tuesday - and so far there
is little sign of a repeat of the historic plunge.
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               34.84     2.83       8.84       32.01  GO-SIN
 GO 0.5 Diff                     -4.20     0.12      -2.78       -4.32  GO-SIN-DIF
 Spot Gas Oil 0.25%              35.52     2.87       8.79       32.65  GO25-SIN
 GO 0.25 Diff                    -3.52     0.17      -4.61       -3.69  GO25-SIN-DIF
 Spot Gas Oil 0.05%              35.58     2.82       8.61       32.76  GO005-SIN
 GO 0.05 Diff                    -3.46     0.11      -3.08       -3.57  GO005-SIN-DIF
 Spot Gas Oil 0.001%             37.98     2.81       7.99       35.17  GO10-SIN
 GO 0.001 Diff                   -1.06     0.11      -9.40       -1.17  GO10-SIN-DIF
 Spot Jet/Kero                   30.92     1.05       3.52       29.87  JET-SIN
 Jet/Kero Diff                   -2.09     0.11      -5.00       -2.20  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 Rashmi Aich)
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