SINGAPORE, Dec 27 (Reuters) - Asian refining margins for jet fuel inched lower on Friday,
posting their biggest weekly decline in five weeks, as the market grappled with ample supplies
amid sloppy demand.
Refining margins or cracks for jet fuel fell 20 cents to $14.22 per barrel over
Dubai crude during Asian trading hours on Friday.
The jet fuel cracks dropped 6% this week in their biggest weekly decline since the week
ended Nov. 22, Refinitiv Eikon data showed. The jet refining margins also determine the
profitability of closely-related kerosene.
But a mild winter so far this year in Japan, which uses kerosene for heating up properties
to fend off chilly weather, has resulted in weaker seasonal demand for the fuel, trade sources
said.
Winter in the Northern hemisphere usually brings peak heating demand for kerosene, but
temperatures in Tokyo are expected to stay mostly above normal for the next couple of weeks,
weather forecast models on Refinitiv Eikon showed.
Cash differentials for jet fuel rose to a premium of 27 cents per barrel to
Singapore quotes, thanks to three firmer deals in the physical trade window on Friday. They were
at a premium of 6 cents on Thursday.
Meanwhile, cash premiums for 10 ppm gasoil rose to 91 cents per barrel over
Singapore quotes, up from 75 cents per barrel a day earlier.
Refining profit margins for gasoil with 10 ppm sulphur content climbed 25
cents to $15.67 per barrel over Dubai crude on Friday.
SINGAPORE CASH DEALS
- Three jet fuel trades, no gasoil deals.
- Unipec sold 100,000 barrels of jet fuel to Singapore trader Hin Leong for Jan. 11-15
loading at a premium of 30 cents a barrel to Singapore quotes.
- Chevron sold 100,000 barrels of jet fuel to Hin Leong for Jan. 16-20 loading at a premium
of 25 cents a barrel to Singapore quotes.
- Shell sold another 100,000 barrels of jet fuel to Hin Leong for Jan. 11-15 loading at a
premium of 30 cents a barrel to Singapore quotes.
- For more information, please click
OTHER NEWS
- Oil prices rose on Friday, hitting three-month highs after data showed record online
spending by U.S. consumers, stoking faith in the world's no. 1 economy even before the hoped-for
end to the trade war between Washington and Beijing.
- Japan will send a warship and patrol planes to protect Japanese ships in the Middle East
as the situation in the region, from which it sources nearly 90% of its crude oil imports,
remains volatile, Japan's top government spokesman said.
ASSESSMENTS
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 79.99 0.89 1.13 79.10
GO 0.5 Diff -2.11 0.05 -2.31 -2.16
Spot Gas Oil 0.25% 80.60 0.89 1.12 79.71
GO 0.25 Diff -1.50 0.05 -3.23 -1.55
Spot Gas Oil 0.05% 81.88 0.89 1.10 80.99
GO 0.05 Diff -0.22 0.05 -18.52 -0.27
Spot Gas Oil 0.001% 83.01 1.00 1.22 82.01
GO 0.001 Diff 0.91 0.16 21.33 0.75
Spot Jet/Kero 80.95 0.61 0.76 80.34
Jet/Kero Diff 0.27 0.21 350.00 0.06
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 Uttaresh.V)
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