June 1, 2020 / 11:36 AM / a month ago

Asia Distillates-Jet fuel posts lowest cash discounts in over two months

    SINGAPORE, June 1 (Reuters) - Asia's cash discounts for jet fuel narrowed on Monday to their
lowest level in over two months, helped by firmer buying interest in the physical market.
    Traders were, however, concerned that resumption of some domestic flights in the region may
not be sufficient to strengthen the aviation fuel market unless international long-haul routes
were reopened.
    Global jet fuel demand is expected to stay weaker in June compared with last year as
airlines continue to keep a part of their fleets grounded due to coronavirus-led travel
restrictions, traders and industry analysts said.
    Cash discounts for jet fuel JET-SIN-DIF narrowed to 52 cents a barrel to Singapore quotes
on Monday, a level not seen since March 18. They were at a discount of 77 cents per barrel on
    Refining margins, also known as cracks, for jet fuel were at 88 cents a barrel
over Dubai crude on Monday, Refinitiv Eikon data showed. The jet cracks averaged at a discount
of $1.08 a barrel below Dubai crude in May.
    Meanwhile, refining margins for 10ppm gasoil rose to $5.12 per barrel over
Dubai crude on Monday, compared with $3.32 a barrel on Friday.
    Cash discounts for 10 ppm gasoil GO10-SIN-DIF were at 36 cents per barrel to Singapore
quotes, as against a 41-cent discount on Friday.

    - Gasoline sales in May by Indian state fuel retailers fell 36% from a year earlier, while
diesel sales dropped 31%, provisional data obtained from two industry sources on Monday showed,
demonstrating a recovery in fuel demand.
    - In April, gasoline sales declined 61% from a year earlier and diesel sales dropped 57%
from a year earlier.
    - No jet fuel trade, no gasoil deal
    - Oil prices were steady on Monday helped by reports that OPEC and Russia were closer to a
deal on extending oil cuts but held back by renewed tension between the United States and China.

 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                39.04     3.38       9.48       35.66  GO-SIN
 GO 0.5 Diff                      -3.33    -0.03       0.91       -3.30  GO-SIN-DIF
 Spot Gas Oil 0.25%               39.94     3.38       9.25       36.56  GO25-SIN
 GO 0.25 Diff                     -2.43    -0.03       1.25       -2.40  GO25-SIN-DIF
 Spot Gas Oil 0.05%               40.77     3.66       9.86       37.11  GO005-SIN
 GO 0.05 Diff                     -1.60     0.25     -13.51       -1.85  GO005-SIN-DIF
 Spot Gas Oil 0.001%              42.01     3.47       9.00       38.54  GO10-SIN
 GO 0.001 Diff                    -0.36     0.05     -12.20       -0.41  GO10-SIN-DIF
 Spot Jet/Kero                    37.56     3.59      10.57       33.97  JET-SIN
 Jet/Kero Diff                    -0.52     0.25     -32.47       -0.77  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 Shinjini Ganguli)
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