Asia Distillates-Jet fuel cash differentials flip to discounts

    SINGAPORE, May 19 (Reuters) - Asia's cash differentials for jet fuel flipped back into
discounts on Wednesday, after staying in positive territory for two weeks, as fresh waves of
coronavirus infections in several regional markets weighed on aviation demand.
    Cash differentials for jet fuel JET-SIN-DIF plunged to a discount of 3 cents per barrel to
Singapore quotes, compared with a premium of 5 cents a barrel on Tuesday.
    A resurgence in coronavirus cases and a slow rate of vaccinations are forcing people to
avoid travel and governments to keep border restrictions intact.
    The Asian jet fuel market, however, is expected to benefit from arbitrage shipments to the
West, where aviation demand is recovering faster, they added.
    Refining margins for jet fuel in Singapore climbed 20 cents to $6.29 per barrel
over Dubai crude during Asian trading hours on Wednesday as feedstock crude prices fell.
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 8.6% to 3.7
million barrels in the week ended May 17, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.9 million barrels this year, compared with
4.2 million barrels in 2020, Reuters calculations showed.
    - U.S. distillate fuel inventories, which include diesel and heating oil, fell by 2.6
million barrels in the week to May 14, according to two market sources, citing American
Petroleum Institute (API) figures.
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) has offered 65,000 tonnes of
10ppm gasoil for June 16-18 loading from the port of New Mangalore. The tender closes on May 24
and has a same-day validity.
    - MRPL was also offering 40,000 tonnes of jet fuel for June 23-25 loading in a tender that
closes on May 24 and has a same-day validity.
    - One gasoil deal, no jet fuel trades
    - China's newly imposed tax on $22 billion worth of annual imports of three fuels will have
a wide-ranging impact on the global oil industry - hurting Venezuelan suppliers to Korean
refiners, and big traders such as Vitol to smaller ones at home.
    - Investors should not fund new oil, gas and coal supply projects if the world wants to
reach net zero emissions by mid-century, the International Energy Agency (IEA) said on Tuesday,
in the top global watchdog's starkest warning yet to curb fossil fuels.

 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               71.93    -2.15      -2.90       74.08  GO-SIN
 GO 0.5 Diff                     -2.04    -0.14       7.37        -1.9  GO-SIN-DIF
 Spot Gas Oil 0.25%              72.08    -2.15      -2.90       74.23  GO25-SIN
 GO 0.25 Diff                    -1.89    -0.14       8.00       -1.75  GO25-SIN-DIF
 Spot Gas Oil 0.05%              72.21    -2.19      -2.94        74.4  GO005-SIN
 GO 0.05 Diff                    -1.76    -0.18      11.39       -1.58  GO005-SIN-DIF
 Spot Gas Oil 0.001%             74.13    -2.05      -2.69       76.18  GO10-SIN
 GO 0.001 Diff                    0.16    -0.04     -20.00         0.2  GO10-SIN-DIF
 Spot Jet/Kero                   71.56    -2.12      -2.88       73.68  JET-SIN
 Jet/Kero Diff                   -0.03    -0.08    -160.00        0.05  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 Barbara Lewis)