February 12, 2019 / 11:00 AM / 7 months ago

Asia Distillates-Jet fuel cracks slip as crude gains; cash discounts widen

    SINGAPORE, Feb 12 (Reuters) - Asian refining margins for jet fuel dipped as crude prices
firmed on Tuesday, while cash discounts for the aviation fuel widened amid muted buying
    Refining margins, or cracks, for jet fuel fell to $13.44 a barrel over Dubai
crude during Asian trade, against $14.21 on Monday.
    Crude oil prices rose on Tuesday morning, supported by OPEC-led supply cuts and U.S.
sanctions against Iran and Venezuela, though analysts expect surging U.S. production and
concerns over economic growth to keep markets in check.
    Jet cash differentials JET-SIN-DIF widened their discounts to 29 cents a barrel to
Singapore quotes on Tuesday, compared with Monday's discount of 20 cents a barrel. 
    The Singapore cash discounts for jet fuel, however, have narrowed considerably over the past
few sessions on expectations of tighter supply, but traders said the upside is likely to be
limited. The differentials were at a discount of $1.69 a barrel two weeks ago.
    "We're in mid-February and the market is looking at March positions, which is usually almost
the end of winter. So the period of heating kerosene demand is ending but travelling aviation
demand will start picking up," one Singapore-based trader said. 
    "But as yet we haven't seen any movement and it is still a bit quiet ... I doubt the
Singapore cash differentials would flip back to premiums any time soon."
    Meanwhile, cash discounts for 10ppm gasoil GO10-SIN-DIF widened to 35 cents a barrel to
Singapore quotes on Tuesday, compared with a discount of 33 cents a day earlier.
    Refining cracks for gasoil with 10ppm sulphur content dropped to $14.39 a
barrel over Dubai crude on Tuesday, down from a near four-week high of $15.05 on Monday.
    - No gasoil deals, no jet fuel trades.
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    - Foreign partners of Venezuela's PDVSA are facing pressure from the state-run oil company
to declare whether they will continue as minority stakeholders in Orinoco Belt projects after
U.S. sanctions, three people familiar with the matter said.
    The sanctions on Petroleos de Venezuela (PDVSA), imposed last month in an attempt to
dislodge Venezuelan President Nicolas Maduro, barred access to U.S. financial networks and oil
supplies for PDVSA joint ventures, pressuring the nation's already falling crude output and
    - The U.S. Environmental Protection Agency is considering releasing its draft proposal to
expand sales of higher-ethanol blends of gasoline without including simultaneous measures it
promised the oil industry to curb biofuel credit speculation, said three sources familiar with
the matter.
    The move would help the agency to lift a summer ban on sales of so-called E15 gasoline in
time for the U.S. driving season but is likely to anger oil refiners that had been asking the
Trump administration for biofuel credit market reforms to reduce their costs.

 CASH ($/T)             ASIA CLOSE         Change   % Change    Prev Close   RIC
 Spot Gas Oil 0.5%                  73.37    -0.33       -0.45        73.70  GO-SIN
 GO 0.5 Diff                        -2.73     0.02       -0.73        -2.75  GO-SIN-DIF
 Spot Gas Oil 0.25%                 73.90    -0.33       -0.44        74.23  GO25-SIN
 GO 0.25 Diff                       -2.20     0.02       -0.90        -2.22  GO25-SIN-DIF
 Spot Gas Oil 0.05%                 74.46    -0.34       -0.45        74.80  GO005-SIN
 GO 0.05 Diff                       -1.63     0.02       -1.21        -1.65  GO005-SIN-DIF
 Spot Gas Oil 0.001%                75.75    -0.37       -0.49        76.12  GO10-SIN
 GO 0.001 Diff                      -0.35    -0.02        6.06        -0.33  GO10-SIN-DIF
 Spot Jet/Kero                      74.90    -0.59       -0.78        75.49  JET-SIN
 Jet/Kero Diff                      -0.29    -0.09       45.00        -0.20  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 David Goodman)
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