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Asia Distillates-Jet fuel cracks rise to over 4-month high, cash discounts narrow

    SINGAPORE, Nov 6 (Reuters) - Asian refining margins for jet fuel rose to their strongest
level in more than four months on Friday, while cash differentials for the aviation fuel firmed
to their smallest discounts since early June helped by firmer demand and a drop in regional
supplies.
    Planned run cuts at some Asian refineries have helped tighten jet fuel supplies, while
improved scopes for arbitrage shipments to United States and Europe were supporting the spot
market, trade sources said.
    But as the European market weakens with renewed coronavirus lockdowns, jet fuel barrels from
the Arab Gulf and India would likely head East, capping improvement in market fundamentals, a
middle distillates trader said.
    Refining margins, also known as cracks, for jet fuel in Singapore climbed 3
cents to $2.81 per barrel over Dubai crude during Asian trading hours on Friday, a level not
seen since June 22. 
    The cracks have doubled this week, posting their second consecutive weekly rise.
    Cash discounts for jet fuel JET-SIN-DIF were at 22 cents a barrel to Singapore quotes, the
smallest discounts since June 4. They were at a discount of 31 cents per barrel a day earlier.
    The front-month time spread for jet fuel narrowed its contango structure on
Friday to trade at a discount of 35 cents per barrel, compared with minus 40 cents a day
earlier, Refinitiv Eikon data showed.
    The jet fuel market in Asia was also drawing support from improving air freight demand and
seasonal heating demand for closely-related kerosene, ahead of peak winter months in Japan and
South Korea.
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 4.4% to 2.7 million tonnes in the week to Nov. 5, data from Dutch
consultancy Insights Global showed. ARA/
    - The data showed ARA jet fuel inventories STK-JET-ARA jumped 3.7% to a new record high of
1.2 million tonnes.
    
    SINGAPORE CASH DEALS
    - No jet fuel trade, one gasoil deal
    
    ASSESSMENTS
    
 MID-DISTILLATES                                                                          
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%                 42.80    -0.21      -0.49        43.01  GO-SIN
 GO 0.5 Diff                       -1.33     0.12      -8.28        -1.45  GO-SIN-DIF
 Spot Gas Oil 0.25%                43.13    -0.18      -0.42        43.31  GO25-SIN
 GO 0.25 Diff                      -1.00     0.15     -13.04        -1.15  GO25-SIN-DIF
 Spot Gas Oil 0.05%                43.37    -0.18      -0.41        43.55  GO005-SIN
 GO 0.05 Diff                      -0.76     0.15     -16.48        -0.91  GO005-SIN-DIF
 Spot Gas Oil 0.001%               43.78    -0.34      -0.77        44.12  GO10-SIN
 GO 0.001 Diff                     -0.35    -0.01       2.94        -0.34  GO10-SIN-DIF
 Spot Jet/Kero                     42.56    -0.35      -0.82        42.91  JET-SIN
 Jet/Kero Diff                     -0.22     0.09     -29.03        -0.31  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 Amy Caren Daniel)
  
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