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 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 $4.63 per barrel
over Dubai crude during Asian trading hours, a level not seen since Jan. 18. The cracks have
jumped 48% in the last two weeks.
Meanwhile, cash differentials for gasoil with 10 ppm sulphur content flipped
to a premium of 5 cents a barrel to Singapore quotes, compared with a discount of 4 cents per
barrel a day earlier.
INDIA FUEL DEMAND
- India's diesel consumption, which accounts for about 40% of overall refined fuel sales in
the country, dipped to 6.8 million tonnes in January, compared with 7.2 million tonnes in
December, official data showed on Tuesday.
- Sales of jet fuel in the country remained unchanged at around 430,000 tonnes in January,
in line with the sales in December.
INVENTORIES
- Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 14.8% to 4.4
million barrels in the week ended Feb. 8, data via S&P Global Platts showed.
- The weekly stocks in Fujairah have averaged 4.5 million barrels so far this year, compared
with a weekly average of 4.2 million barrels in 2020, Reuters calculations showed.
- U.S. distillate fuel inventories, which include diesel and heating oil, fell by 487,000
barrels in the week to Feb. 5, compared with analysts' expectations for a draw of 790,000
barrels, data from industry group the American Petroleum Institute showed on Tuesday.
SINGAPORE CASH DEALS
- One gasoil deal, one jet fuel trade
OTHER NEWS
- Exxon Mobil Corp said on Wednesday it will close its 72-year-old Altona refinery
in Australia, the country's smallest, and convert it to a fuel import terminal as refiners
struggle with low demand.
- Oil extended its rally for a ninth day on Wednesday, supported by producer supply cuts and
hopes that vaccine rollouts will drive a recovery in demand.
ASSESSMENTS
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 65.97 0.11 0.17 65.86
GO 0.5 Diff -1.51 0.09 -5.63 -1.6
Spot Gas Oil 0.25% 66.07 0.11 0.17 65.96
GO 0.25 Diff -1.41 0.09 -6.00 -1.5
Spot Gas Oil 0.05% 66.34 0.11 0.17 66.23
GO 0.05 Diff -1.14 0.09 -7.32 -1.23
Spot Gas Oil 0.001% 67.53 0.11 0.16 67.42
GO 0.001 Diff 0.05 0.09 -225.00 -0.04
Spot Jet/Kero 64.51 0 0.00 64.51
Jet/Kero Diff -0.05 0.07 -58.33 -0.12
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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