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Asia Distillates-Jet fuel cash differentials drop to 3-month low

Asia’s cash differentials for jet fuel dropped to their lowest level in three months on Wednesday, weighed down by persistent weakness in aviation demand.

Cash differentials for jet fuel JET-SIN-DIF were at a discount of 38 cents per barrel to Singapore quotes on Wednesday, a level not seen since Nov. 23. They were at a discount of 25 cents per barrel on Tuesday.

The jet fuel market is expected to remain under pressure in the near term as lack of both business and leisure travel due to COVID-19 keep thousands of flights grounded across the globe, trade sources said.

Refining profit margins for jet fuel inched lower by 2 cents to $5.38 per barrel over Dubai crude during Asian trading hours.

– Judicial managers of collapsed oil trading firm Hin Leong Trading Pte Ltd have filed a winding up application for the company, according to a notice posted on a government website. The move comes nearly a year after the company racked up some $4 billion in debt and entered court restructuring.

– Court-appointed supervisors from accounting firm PwC submitted the application to wind up Hin Leong on Feb. 5, according to the notice dated Feb. 19 posted on the Government Gazette. The application is expected to be heard by the Singapore High Court on March 8.

– Middle-distillate inventories in the Fujairah Oil Industry Zone slipped 2.4% to 4.1 million barrels in the week ended Feb. 22, 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.
– U.S. distillate fuel inventories, which include diesel and heating oil, fell by 4.5 million barrels in the week to Feb. 19, compared with expectations for a draw of 3.7 million barrels, data from industry group the American Petroleum Institute showed.

– Two gasoil deals, three jet fuel trades

– The Maritime and Port Authority of Singapore has joined an industry-led project to advance the use of ammonia as a marine fuel to reduce carbon emissions, it said on Wednesday.

 CASH ($/T)                  ASIA CLOSE       Change   % Change   Prev Close   RIC
 Spot Gas Oil 0.5%                      69.1    -0.96      -1.37        70.06  GO-SIN
 GO 0.5 Diff                            -1.6     0.04      -2.44        -1.64  GO-SIN-DIF
 Spot Gas Oil 0.25%                     69.2    -0.96      -1.37        70.16  GO25-SIN
 GO 0.25 Diff                           -1.5     0.04      -2.60        -1.54  GO25-SIN-DIF
 Spot Gas Oil 0.05%                    69.48    -1.02      -1.45         70.5  GO005-SIN
 GO 0.05 Diff                          -1.22    -0.02       1.67         -1.2  GO005-SIN-DIF
 Spot Gas Oil 0.001%                   70.69    -1.02      -1.42        71.71  GO10-SIN
 GO 0.001 Diff                         -0.01    -0.02    -200.00         0.01  GO10-SIN-DIF
 Spot Jet/Kero                         67.87    -0.81      -1.18        68.68  JET-SIN
 Jet/Kero Diff                         -0.38    -0.13      52.00        -0.25  JET-SIN-DIF
 Brent M1                                                                                     
 Gasoil M1                                                                                    
 Gasoil M1/M2                                                                                 
 Gasoil M2                                                                                    
 Regrade M1                                                                                   
 Regrade M2                                                                                   
 Jet M1                                                                                       
 Jet M1/M2                                                                                    
 Jet M2                                                                                       
 Gasoil 500ppm-Dubai Cracks                                                                   
 Gasoil 500ppm-Dubai Cracks                                                                   
 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

Source: Reuters (Reporting by Koustav Samanta; Editing by Krishna Chandra Eluri)

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