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Asia Distillates-Jet fuel refining margins dip, cash discounts widen

    SINGAPORE, Feb 17 (Reuters) - Asian jet fuel refining profits eased on Wednesday, partly
weighed down by firmer feedstock crude prices, while cash discounts for the aviation fuel in
Singapore widened on sluggish buying interests in the physical market.
    Refining margins, also known as cracks, for jet fuel dipped 68 cents to $4.54
per barrel over Dubai crude during Asian trading hours.
    The jet cracks, which also determine the profitability of closely-related kerosene, however,
have climbed 45.5% in the past three weeks, Refinitiv Eikon data showed.
    Seasonal heating demand for kerosene would soften gradually as the peak winter months in
North Asia come to a close in coming weeks, and market watchers are concerned the jet fuel
market might remain under pressure until aviation demand picks up substantially.
    Temperature levels in Tokyo and Seoul are expected to stay mostly above normal for the next
15-day period, weather forecast models on Refinitiv Eikon showed.
    Cash differentials for jet fuel JET-SIN-DIF were at a discount of 14 cents per barrel to
Singapore quotes, compared with a 11 cents per barrel a day earlier.
    
    FUJAIRAH INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone slipped 5.4% to 4.2
million barrels in the week ended Feb. 15, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 4.4 million barrels so far this year, compared
with a weekly average of 4.2 million barrels in 2020, Reuters calculations showed.
    
    REFINING NZ ON TRACK TO CONVERT REFINERY TO IMPORT TERMINAL
    - Refining NZ has made "significant progress" in a study towards converting New
Zealand's only oil refinery into a fuel import terminal, commencing as soon as next year, the
firm said on Wednesday.
    - The Marsden Point refinery, which fills about 70% of New Zealand's fuel needs, has battled
competitive pressure from huge refineries in Asia and rising domestic costs of power and gas,
even as the coronavirus crisis caused unprecedented destruction of fuel demand. 
    
    SINGAPORE CASH DEALS
    - One gasoil deal, no jet fuel trades
    
    OTHER NEWS
    - Oil prices advanced further on Wednesday, underpinned by major supply disruption in the
south of the United States this week caused by a winter storm in Texas.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               67.85     0.06       0.09       67.79  GO-SIN
 GO 0.5 Diff                     -1.69    -0.04       2.42       -1.65  GO-SIN-DIF
 Spot Gas Oil 0.25%              67.95     0.06       0.09       67.89  GO25-SIN
 GO 0.25 Diff                    -1.59    -0.04       2.58       -1.55  GO25-SIN-DIF
 Spot Gas Oil 0.05%              68.34     0.06       0.09       68.28  GO005-SIN
 GO 0.05 Diff                     -1.2    -0.04       3.45       -1.16  GO005-SIN-DIF
 Spot Gas Oil 0.001%             69.49     0.03       0.04       69.46  GO10-SIN
 GO 0.001 Diff                   -0.05    -0.07    -350.00        0.02  GO10-SIN-DIF
 Spot Jet/Kero                   66.81    -0.27      -0.40       67.08  JET-SIN
 Jet/Kero Diff                   -0.14    -0.03      27.27       -0.11  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 Rashmi Aich)
  
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