SINGAPORE, Dec 17 (Reuters) - Asia's cash premiums for jet fuel dropped on Tuesday, weighed
down by abundant supplies and lacklustre aviation demand, while traders were sceptical seasonal
heating demand for kerosene would likely remain weak due to a warmer winter this year.
Cash differentials for jet fuel fell to a premium of 5 cents per barrel to
Singapore quotes on Tuesday, down from a 35-cents premium a day earlier.
Refining profit margins or cracks for jet fuel were at $14.95 per barrel over
Dubai crude during Asian trading hours on Tuesday, compared with $14.76 a barrel on Monday.
Winter in the northern hemisphere typically brings peak heating demand for kerosene, which
belongs to the same grade of oil products as jet fuel, with jet refining margins determining the
profitability of both.
But temperatures in Tokyo are expected to stay well above normal for the next couple of
weeks, while temperatures in Seoul would remain mostly higher than normal over the next 15-day
period, weather forecast models on Refinitiv Eikon showed.
Meanwhile, cracks for gasoil with 10 parts per million (ppm) sulphur content
rose to $15.60 per barrel over Dubai crude on Tuesday, their highest in a month. Cracks for the
benchmark gasoil grade in Singapore were at $15.01 per barrel on Monday.
Cash premiums for 10ppm gasoil climbed to 65 cents per barrel over Singapore
quotes on Tuesday, up from 60 cents per barrel in the previous session.
TENDERS
- India's Mangalore Refinery and Petrochemicals Ltd (MRPL) was offering 40,000 tonnes of jet
fuel for loading over Jan. 27-29 from the port of New Mangalore.
- The tender closes on Dec. 18 and will remain valid until Dec. 19.
- For more such information, please click
SINGAPORE CASH DEALS
- No gasoil trades, one jet fuel deal.
- Singapore trader Hin Leong bought 100,000 barrels of jet fuel from Shell for Jan. 8-12
loading at a discount of 20 cents barrel to Singapore quotes.
- For more information, please click
OTHER NEWS
- Oil prices trickled a fraction lower on Tuesday but remained near a three-month high as
investors kept the faith with hopes that a fully fledged U.S.-China trade deal is in the
pipeline and set to stoke oil demand in the world's biggest economies.
- U.S. oil output from seven major shale formations is expected to rise about 29,000 barrels
per day (bpd) in January to a record 9.14 million bpd, the U.S. Energy Information
Administration said in a monthly forecast on Monday.
ASSESSMENTS
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 77.61 0.91 1.19 76.70
GO 0.5 Diff -2.16 0.05 -2.26 -2.21
Spot Gas Oil 0.25% 78.21 0.91 1.18 77.30
GO 0.25 Diff -1.56 0.05 -3.11 -1.61
Spot Gas Oil 0.05% 79.43 0.88 1.12 78.55
GO 0.05 Diff -0.34 0.02 -5.56 -0.36
Spot Gas Oil 0.001% 80.43 0.92 1.16 79.51
GO 0.001 Diff 0.65 0.05 8.33 0.60
Spot Jet/Kero 79.15 0.15 0.19 79.00
Jet/Kero Diff 0.05 -0.30 -85.71 0.35
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 Robert Birsel)
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