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Asia Distillates-Jet fuel cash premiums surge to 20-month high

SINGAPORE, Jan 21 (Reuters) – Asia’s cash premiums for jet fuel rose for a fourth consecutive session on Tuesday, climbing to their highest in more than 1-1/2 years, as aviation demand picks up ahead of a peak travelling season. Cash premiums for jet fuel <JET-SIN-DIF> jumped to 42 cents per barrel over Singapore quotes on Tuesday, the highest since May 2018. They were at 28 cents per barrel a day earlier. There are relatively less spot cargoes in the market at the moment, a Singapore-based trader said on Tuesday, adding that aviation demand was “structurally getting a boost with the upcoming Chinese New Year travelling season.” China’s week-long Lunar New Year holidays typically boost aviation passenger demand in the region. The holiday, also known as the Spring Festival and celebrated elsewhere across Asia including Vietnam, Malaysia, Indonesia and Singapore starts later this week. The front-month time spread for jet fuel traded at a premium of 30 cents a barrel on Tuesday, 5 cents lower from the previous session, Refinitiv Eikon data showed. Refining margins or cracks for jet fuel eased to $11.73 per barrel over Dubai crude during Asian trade on Tuesday, compared with $12.03 a barrel on Monday. Meanwhile, cracks for gasoil with 10 ppm sulphur content rose to $12.61 per barrel over Dubai crude on Tuesday, up from $12.55 per barrel on Monday. Cash premiums for 10 ppm gasoil <GO10-SIN-DIF> were at 18 cents per barrel over Singapore quotes on Tuesday, compared with 15 cents per barrel on Monday. SINGAPORE CASH DEALS – Four gasoil trades, no jet fuel deals. – Trafigura bought 150,000 barrels of 10 ppm gasoil from Winson Oil for Feb. 7-11 loading at a premium of 20 cents a barrel to February Singapore quotes. – Trafigura bought another 150,000 barrels of 10 ppm gasoil from Winson Oil for Feb. 14-18 loading at a premium of 20 cents a barrel to February Singapore quotes. – Winson Oil sold 150,000 barrels of 10 ppm gasoil to Total for Feb. 12-16 loading at a premium of 15 cents a barrel to Singapore quotes. – Winson also sold 150,000 barrels of 10 ppm gasoil to Trafigura for Feb. 16-20 loading at a premium of 15 cents a barrel to February Singapore quotes. – For more information, click OTHER NEWS – Japan’s biggest refiner, JXTG Nippon Oil & Energy Corp, shut the 120,000 barrel-per-day (bpd) crude distillation unit (CDU) at its Marifu refinery for scheduled maintenance, a company spokesman said on Tuesday. – Oil prices eased on Tuesday as investors appeared to shrug off earlier supply concerns following a force majeure declared by Libya on two major oilfields amid a military blockade. – Libya will face a “catastrophic situation” unless foreign powers put pressure on eastern-based commander Khalifa Haftar to lift a blockade of oilfields that has cut output to almost zero, the country’s internationally recognised premier said on Monday. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 73.65 -0.79 -1.06 74.44 <GO-SIN> GO 0.5 Diff -2.02 0.06 -2.88 -2.08 <GO-SIN-DIF> Spot Gas Oil 0.25% 74.36 -0.79 -1.05 75.15 <GO25-SIN> GO 0.25 Diff -1.31 0.06 -4.38 -1.37 <GO25-SIN-DIF> Spot Gas Oil 0.05% 75.50 -0.79 -1.04 76.29 <GO005-SIN> GO 0.05 Diff -0.17 0.06 -26.09 -0.23 <GO005-SIN-DIF> Spot Gas Oil 0.001% 75.84 -0.83 -1.08 76.67 <GO10-SIN> GO 0.001 Diff 0.18 0.03 20.00 0.15 <GO10-SIN-DIF> Spot Jet/Kero 75.20 -1.07 -1.40 76.27 <JET-SIN> Jet/Kero Diff 0.42 0.14 50.00 0.28 <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 Louise Heavens)


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