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Asia Distillates-Jet fuel cash discounts narrow, cracks gain further

    SINGAPORE, Nov 4 (Reuters) - Asia's jet fuel cash differentials firmed for a third straight
session on Wednesday amid active buying interest for physical cargoes, while refining margins
for the aviation fuel climbed to a multi-month high as run cuts at some regional refineries have
helped tighten supplies.
    Cash discounts for jet fuel JET-SIN-DIF were at 36 cents a barrel to Singapore quotes, the
smallest discounts since July 28. They were at a discount of 45 cents per barrel a day earlier.
    Refining margins, also known as cracks, for jet fuel in Singapore rose by 30
cents to $2.45 per barrel over Dubai crude during Asian trading hours, the strongest since July
21.
    "The jet cracks have been well supported (recently) due to the ongoing run cuts from Asian
refiners, excluding China," a Singapore-based trader said.
    Kerosene demand from Japan, which uses the fuel for winter heating, was another factor
currently supporting the cracks, trade sources said. Jet fuel and kerosene belong to the same
grade of oil products, with jet refining margins determining the profitability of both.
    The regrade, the price spread between jet and gasoil, for December stood at a
discount of 52 cents a barrel on Wednesday, compared with minus $1 on Tuesday. The regrade has
improved about 42% so far this week.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone climbed 26.1% to 5.4
million barrels in the week ended Nov. 2, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.97 million barrels so far in 2020, compared
with the weekly average of 2.4 million barrels in 2019, Reuters calculations showed.
    - U.S. distillate stockpiles fell by 577,000 barrels in the week to Oct. 30, compared with
expectations for a draw of 1.7 million barrels, data from industry group the American Petroleum
Institute (API) showed on Tuesday.
    
    INDIA FUEL EXPORTS
    - India's diesel exports fell 4.3% to 2.67 million tonnes in September from 2.79 million
tonnes in August, government data showed on Tuesday. The September exports were about 20% lower
year on year, the data showed.
    - The country exported about 270,000 tonnes of jet fuel in September, compared with 140,000
tonnes in August and 720,000 tonnes in September 2019, data showed.
    
    SINGAPORE CASH DEALS
    - One jet fuel trade, one gasoil deal.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                            
 CASH ($/T)               ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%                  41.67     0.17       0.41        41.50  GO-SIN
 GO 0.5 Diff                        -1.46     0.03      -2.01        -1.49  GO-SIN-DIF
 Spot Gas Oil 0.25%                 41.97     0.17       0.41        41.80  GO25-SIN
 GO 0.25 Diff                       -1.16     0.03      -2.52        -1.19  GO25-SIN-DIF
 Spot Gas Oil 0.05%                 42.17     0.17       0.40        42.00  GO005-SIN
 GO 0.05 Diff                       -0.96     0.03      -3.03        -0.99  GO005-SIN-DIF
 Spot Gas Oil 0.001%                42.78     0.16       0.38        42.62  GO10-SIN
 GO 0.001 Diff                      -0.35     0.03      -7.89        -0.38  GO10-SIN-DIF
 Spot Jet/Kero                      41.49     0.69       1.69        40.80  JET-SIN
 Jet/Kero Diff                      -0.36     0.09     -20.00        -0.45  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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