January 14, 2020 / 10:22 AM / 7 days ago

Asia Distillates-Jet fuel refining margins weaken further

    SINGAPORE, Jan 14 (Reuters) - Asian refining margins for jet fuel dropped for a third
consecutive session on Tuesday, plunging to their weakest seasonal levels in the last four
years, as a milder winter in Japan this year has capped seasonal demand for the closely-related
heating kerosene.
    Refining margins or cracks for jet fuel fell to $11.87 per barrel over Dubai
crude during Asian trade on Tuesday, a level not seen since end-April last year. They were at
$12.51 per barrel a day earlier.
    Cracks for the aviation fuel, which also determines the profitability of kerosene, are
currently at their lowest January levels since 2016, Refinitiv Eikon data showed.
    Cash premiums for jet fuel JET-SIN-DIF were at 18 cents per barrel to Singapore quotes on
Tuesday, compared with a 16-cent premium on Monday.
    Meanwhile, cash premiums for 10 ppm gasoil GO10-SIN-DIF were at 36 cents per barrel over
Singapore quotes on Tuesday, down from 43 cents a barrel on Monday.
    Refining margins for gasoil with 10 ppm sulphur content fell to $12.84 per
barrel over Dubai crude on Tuesday, down from $13.72 per barrel on Monday.
    - China's crude oil imports in 2019 surged 9.5% from a year earlier, setting a record for a
17th straight year, as demand growth from new refineries built last year propelled purchases by
the world's biggest importer, data showed on Tuesday.
    - Last year, China imported a record 506 million tonnes of crude oil, 9.5% above 2018's
level, according to data from the General Administration of Customs. That is equivalent to 10.12
million barrels per day (bpd), according to Reuters' calculations based on the data.
    - Chinese crude imports have set records every year since 2003, according to customs data on
Refinitiv Eikon. 
    - December arrivals were 45.76 million tonnes, customs reported, equivalent to 10.78 million
bpd, second only to the monthly record of 11.13 million bpd set in November.

    - No jet fuel trades, one gasoil deal.
    - Winson Oil sold 150,000 barrels of 10 ppm gasoil to Trafigura for Feb. 9-13 loading at a
premium of 30 cents per barrel to February Singapore quotes.
    - For more information, click
    - Sales of marine fuels, also known as bunkers, in Singapore hit a four-year low in 2019,
but soared in the last month of the year as vessels globally switched to cleaner fuels to meet
new emission rules this year, official data showed.
    In 2019, bunker sales in Singapore fell 5% to 47.5 million tonnes, data from the Maritime
and Port Authority of Singapore (MPA) showed, as regional competition increased, while ships
scaling back purchases of high-sulphur fuel towards the year-end also weighed. 
    - Oil prices slid towards $64 a barrel on Tuesday, extending four straight days of declines
due to easing concerns of possible supply disruptions as a result of tensions in the Middle

 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 74.03    -1.95      -2.57       75.98  GO-SIN
 GO 0.5 Diff                       -2.07    -0.01       0.49       -2.06  GO-SIN-DIF
 Spot Gas Oil 0.25%                74.74    -1.92      -2.50       76.66  GO25-SIN
 GO 0.25 Diff                      -1.36     0.02      -1.45       -1.38  GO25-SIN-DIF
 Spot Gas Oil 0.05%                75.99    -1.95      -2.50       77.94  GO005-SIN
 GO 0.05 Diff                      -0.11    -0.01      10.00       -0.10  GO005-SIN-DIF
 Spot Gas Oil 0.001%               76.46    -2.01      -2.56       78.47  GO10-SIN
 GO 0.001 Diff                      0.36    -0.07     -16.28        0.43  GO10-SIN-DIF
 Spot Jet/Kero                     75.26    -1.65      -2.15       76.91  JET-SIN
 Jet/Kero Diff                      0.18     0.02      12.50        0.16  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 Aditya Soni)
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