February 1, 2019 / 11:35 AM / in 18 days

Asia Distillates-Jet fuel margins climb to highest in over two weeks

    SINGAPORE, Feb 1 (Reuters) - Asian refining margins for jet fuel climbed on Friday to their
highest in over two weeks, while cash differentials for the aviation fuel firmed to their
smallest discounts in three weeks.
    Refining margins, also known as cracks, for jet fuel rose to $14.76 a barrel
over Dubai crude in a fourth consecutive session of gains, hitting their strongest levels since
Jan. 15. They were at $14.24 a barrel on Thursday.
    Jet cracks, which also determine the profitability of kerosene, are currently about 7
percent lower than at this time in 2018 as a warmer-than-normal winter has kept a lid on heating
demand for kerosene this year. 
    Following two weeks of declines, jet margins have risen about 10 percent this week in their
biggest weekly gain since July last year.
    Cash differentials for jet fuel narrowed to a discount of $1.36 a barrel to Singapore quotes
on Friday, compared with Thursday's discount of $1.42 a barrel.
    The draw in Singapore middle distillate stocks this week has boosted sentiment further in
the market, which is expecting supplies to tighten over the next few weeks, trade sources said.
    Singapore onshore middle-distillate stocks declined about 5 percent to 11.8 million barrels
in the week to Wednesday, Enterprise Singapore data showed on Thursday.
    A likely surge in air passenger travel during the Chinese New Year holidays is expected to
boost aviation fuel demand, while some regional refineries scheduled for spring maintenance over
the next couple of months would curb availability of barrels, market watchers said.
    Chinese New Year, known as Lunar New Year in many parts of Asia, is on Feb. 5-6 this year.
    Meanwhile, refining cracks for gasoil with 10ppm sulphur content climbed to
$14.67 a barrel over Dubai crude during Asian trading hours, from $13.89 a barrel on Thursday. 
    Cash discounts for 10ppm gasoil GO10-SIN-DIF were at 35 cents a barrel to Singapore quotes
on Friday, compared with a discount of 42 cents per barrel a day earlier.
    
    
    ARA STOCKS
    - Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 6.4 percent to about 2.4 million tonnes in the week to Jan. 31,
data from PJK International showed.
    - Gasoil stocks increased on rising imports despite cold weather triggering strong demand
from inland markets, the Dutch consultancy said.
    - ARA jet fuel inventories STK-JET-ARA rose 5.1 percent to 659,000 tonnes in the week to
Thursday, PJK data showed.
    - Compared with year-ago levels, jet fuel stocks were up about 5 percent, while gasoil
inventories were about 21 percent down.
    
    
    SINGAPORE CASH DEALS
    - Three gasoil deals, no jet fuel trades.
    - BP sold 250,000 barrels of 10ppm gasoil to Vitol for Feb. 16-20 loading at a discount of
30 cents a barrel to the balance of February Singapore quotes.
    - Total bought 150,000 barrels of 10ppm gasoil from Winson Oil for Feb. 19-23 loading at a
discount of 15 cents a barrel to Singapore quotes.
    - Total bought another 158,000 barrels of 10ppm gasoil from BP for Feb. 16-20 loading at a
discount of 30 cents a barrel to Singapore quotes.
    - For more information, please click   
    
    
    OTHER NEWS
    - China's state energy giants are set to raise spending on domestic drilling this year to
the highest levels since 2016, focusing on adding natural gas reserves in a concerted drive to
boost local supplies.
    Responding to President Xi Jinping's call last August to boost domestic energy security,
China's trio of oil majors - PetroChina, Sinopec Corp and CNOOC Ltd - are adding thousands of
wells at oil basins in the remote deserts of the northwest region of Xinjiang, shale rocks in
southwest Sichuan province and deepwater fields of the South China Sea.
    - Asian spot prices for liquefied natural gas (LNG) fell to a nine-month low this week as
the region remains oversupplied amid a warmer-than-usual winter.
    - Oil prices fell as the resolution of trade talks between the United States and China
remained in doubt, and data from China stoked further concerns over an economic slowdown that
could dent fuel demand.

    
    ASSESSMENTS
 MID-DISTILLATES                                                                              
 CASH ($/T)             ASIA CLOSE         Change   % Change    Prev Close    RIC
 Spot Gas Oil 0.5%                  71.56    -1.06       -1.46         72.62  GO-SIN
 GO 0.5 Diff                        -3.05     0.00        0.00         -3.05  GO-SIN-DIF
 Spot Gas Oil 0.25%                 72.11    -1.11       -1.52         73.22  GO25-SIN
 GO 0.25 Diff                       -2.50    -0.05        2.04         -2.45  GO25-SIN-DIF
 Spot Gas Oil 0.05%                 72.55    -1.07       -1.45         73.62  GO005-SIN
 GO 0.05 Diff                       -2.06    -0.01        0.49         -2.05  GO005-SIN-DIF
 Spot Gas Oil 0.001%                74.27    -0.98       -1.30         75.25  GO10-SIN
 GO 0.001 Diff                      -0.35     0.07      -16.67         -0.42  GO10-SIN-DIF
 Spot Jet/Kero                      73.57    -0.98       -1.31         74.55  JET-SIN
 Jet/Kero Diff                      -1.36     0.06       -4.23         -1.42  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 David Evans)
  
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