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Asia Distillates-Jet fuel cash differentials climb to over 2-month high

    SINGAPORE, Feb 10 (Reuters) - Asia's cash differentials for jet fuel firmed on Wednesday to
their strongest level in more than two months, while prompt-month spread for the aviation fuel
narrowed its contango for a second straight session.
    Cash discounts for jet fuel JET-SIN-DIF narrowed to 5 cents per barrel to Singapore
quotes, the smallest discounts since Dec. 8. They were at a discount of 12 cents per barrel on
Tuesday.
    The Feb/March time spread for jet fuel in Singapore, which has narrowed its contango
structure by about 35% in the last two weeks, traded at a discount of 22 cents a barrel on
Wednesday, Refinitiv Eikon data showed.
    The lack of scope for international travel due to coronavirus-led border restrictions would
likely boost domestic aviation demand in some countries, helping support the jet fuel market in
coming days, trade sources said.
    Refining margins, also known as cracks, for jet fuel rose to $4.63 per barrel
over Dubai crude during Asian trading hours, a level not seen since Jan. 18. The cracks have
jumped 48% in the last two weeks.
    Meanwhile, cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF flipped
to a premium of 5 cents a barrel to Singapore quotes, compared with a discount of 4 cents per
barrel a day earlier.
    
    INDIA FUEL DEMAND
    - India's diesel consumption, which accounts for about 40% of overall refined fuel sales in
the country, dipped to 6.8 million tonnes in January, compared with 7.2 million tonnes in
December, official data showed on Tuesday.
    - Sales of jet fuel in the country remained unchanged at around 430,000 tonnes in January,
in line with the sales in December.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 14.8% to 4.4
million barrels in the week ended Feb. 8, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 4.5 million barrels so far this year, compared
with a weekly average of 4.2 million barrels in 2020, Reuters calculations showed.
    - U.S. distillate fuel inventories, which include diesel and heating oil, fell by 487,000
barrels in the week to Feb. 5, compared with analysts' expectations for a draw of 790,000
barrels, data from industry group the American Petroleum Institute showed on Tuesday.
    
    SINGAPORE CASH DEALS
    - One gasoil deal, one jet fuel trade
    
    OTHER NEWS
    - Exxon Mobil Corp said on Wednesday it will close its 72-year-old Altona refinery
in Australia, the country's smallest, and convert it to a fuel import terminal as refiners
struggle with low demand.
    - Oil extended its rally for a ninth day on Wednesday, supported by producer supply cuts and
hopes that vaccine rollouts will drive a recovery in demand.
    
    ASSESSMENTS
    
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               65.97     0.11       0.17       65.86  GO-SIN
 GO 0.5 Diff                     -1.51     0.09      -5.63        -1.6  GO-SIN-DIF
 Spot Gas Oil 0.25%              66.07     0.11       0.17       65.96  GO25-SIN
 GO 0.25 Diff                    -1.41     0.09      -6.00        -1.5  GO25-SIN-DIF
 Spot Gas Oil 0.05%              66.34     0.11       0.17       66.23  GO005-SIN
 GO 0.05 Diff                    -1.14     0.09      -7.32       -1.23  GO005-SIN-DIF
 Spot Gas Oil 0.001%             67.53     0.11       0.16       67.42  GO10-SIN
 GO 0.001 Diff                    0.05     0.09    -225.00       -0.04  GO10-SIN-DIF
 Spot Jet/Kero                   64.51        0       0.00       64.51  JET-SIN
 Jet/Kero Diff                   -0.05     0.07     -58.33       -0.12  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 Shailesh Kuber)
  
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