January 21, 2020 / 10:41 AM / a month ago

Asia Distillates-Jet fuel cash premiums surge to 20-month high

    SINGAPORE, Jan 21 (Reuters) - Asia's cash premiums for jet fuel rose for a fourth
consecutive session on Tuesday, climbing to their highest in more than 1-1/2 years, as aviation
demand picks up ahead of a peak travelling season.
    Cash premiums for jet fuel JET-SIN-DIF jumped to 42 cents per barrel over Singapore quotes
on Tuesday, the highest since May 2018. They were at 28 cents per barrel a day earlier.
    There are relatively less spot cargoes in the market at the moment, a Singapore-based trader
said on Tuesday, adding that aviation demand was "structurally getting a boost with the upcoming
Chinese New Year travelling season."
    China's week-long Lunar New Year holidays typically boost aviation passenger demand in the
region. The holiday, also known as the Spring Festival and celebrated elsewhere across Asia
including Vietnam, Malaysia, Indonesia and Singapore starts later this week.
    The front-month time spread for jet fuel traded at a premium of 30 cents a
barrel on Tuesday, 5 cents lower from the previous session, Refinitiv Eikon data showed.
    Refining margins or cracks for jet fuel eased to $11.73 per barrel over Dubai
crude during Asian trade on Tuesday, compared with $12.03 a barrel on Monday.
    Meanwhile, cracks for gasoil with 10 ppm sulphur content rose to $12.61 per
barrel over Dubai crude on Tuesday, up from $12.55 per barrel on Monday.
    Cash premiums for 10 ppm gasoil GO10-SIN-DIF were at 18 cents per barrel over Singapore
quotes on Tuesday, compared with 15 cents per barrel on Monday.
    
    SINGAPORE CASH DEALS
    - Four gasoil trades, no jet fuel deals.
    - Trafigura bought 150,000 barrels of 10 ppm gasoil from Winson Oil for Feb. 7-11 loading at
a premium of 20 cents a barrel to February Singapore quotes.
    - Trafigura bought another 150,000 barrels of 10 ppm gasoil from Winson Oil for Feb. 14-18
loading at a premium of 20 cents a barrel to February Singapore quotes.
    - Winson Oil sold 150,000 barrels of 10 ppm gasoil to Total for Feb. 12-16 loading at a
premium of 15 cents a barrel to Singapore quotes.
    - Winson also sold 150,000 barrels of 10 ppm gasoil to Trafigura for Feb. 16-20 loading at a
premium of 15 cents a barrel to February Singapore quotes.
    - For more information, click
    
    OTHER NEWS
    - Japan's biggest refiner, JXTG Nippon Oil & Energy Corp, shut the 120,000 barrel-per-day
(bpd) crude distillation unit (CDU) at its Marifu refinery for scheduled maintenance, a company
spokesman said on Tuesday.
    - Oil prices eased on Tuesday as investors appeared to shrug off earlier supply concerns
following a force majeure declared by Libya on two major oilfields amid a military blockade.

    - Libya will face a "catastrophic situation" unless foreign powers put pressure on
eastern-based commander Khalifa Haftar to lift a blockade of oilfields that has cut output to
almost zero, the country's internationally recognised premier said on Monday.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                73.65    -0.79      -1.06       74.44  GO-SIN
 GO 0.5 Diff                      -2.02     0.06      -2.88       -2.08  GO-SIN-DIF
 Spot Gas Oil 0.25%               74.36    -0.79      -1.05       75.15  GO25-SIN
 GO 0.25 Diff                     -1.31     0.06      -4.38       -1.37  GO25-SIN-DIF
 Spot Gas Oil 0.05%               75.50    -0.79      -1.04       76.29  GO005-SIN
 GO 0.05 Diff                     -0.17     0.06     -26.09       -0.23  GO005-SIN-DIF
 Spot Gas Oil 0.001%              75.84    -0.83      -1.08       76.67  GO10-SIN
 GO 0.001 Diff                     0.18     0.03      20.00        0.15  GO10-SIN-DIF
 Spot Jet/Kero                    75.20    -1.07      -1.40       76.27  JET-SIN
 Jet/Kero Diff                     0.42     0.14      50.00        0.28  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 Louise Heavens)
  
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