SINGAPORE, April 24 (Reuters) – Asia’s jet fuel cash differentials climbed on Tuesday to the highest in over two weeks, lifted by expectations for strong summer travelling demand amid tightening supplies, while cash premiums for 10ppm gasoil hit a fresh high for this year.
Cash differentials for jet fuel JET-SIN-DIF gained to $1.09 a barrel to Singapore quotes, up from 99 cents on Monday.
“People are really bullish on jet fuel going forward and that is reflecting in the data we’re getting on demand and cargo flows. Aviation demand should keep good support and there’s also not much of supply,” a Singapore-based trader said.
Meanwhile, cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF edged higher to 55 cents a barrel to Singapore quotes, up from 54 cents on Monday.
Gasoil cash premiums are at their highest levels since S&P Global Platts switched the benchmarks in gasoil grades in January this year to maximum sulphur content of 10 ppm sulphur, from 500 ppm sulphur previously.
The ongoing seasonal refinery turnarounds in Asia have started to tighten supplies for middle distillates in the region, trade sources said.
– Sri Lanka’s Ceylon Petroleum Corp (Ceypetco) is seeking a combination cargo of 150,000 barrels of 500ppm sulphur gasoil, 123,000 barrels of 92RON gasoline and 47,000 barrels of 95RON gasoline for June 4-5 delivery in a tender that closes on April 24 with a validity of three days.
SINGAPORE CASH DEALS:
– No gasoil deal, no jet fuel trade. O/AS
– China’s diesel exports hit all-time highs in March as refineries churned out fuel in record volumes, outpacing domestic demand, according to China’s General Administration of Customs on Monday. Oil rose above $75 a barrel to its highest since November 2014, supported by OPEC-led production cuts, strong demand and the prospect of renewed U.S. sanctions on Iran. O/R
– Iran’s oil minister said there would be no need to extend a pact between OPEC and non-OPEC producers aimed at bolstering oil prices if the crude price continued to rise, the ministry’s official website SHANA reported on Monday. As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits – and flooding Europe with a record amount of crude. Iraq will hold an auction to award exploration and development contracts to international companies on Thursday, the oil ministry said in a statement. Iraq is offering 11 new blocks for exploration in border areas with Iran and Kuwait and in offshore Gulf waters. ($/T)
Spot Gas Oil 0.5%
84.15 GO-SIN GO 0.5 Diff
-1.28 GO-SIN-DIF Spot Gas Oil 0.25%
84.06 GO25-SIN GO 0.25 Diff
-1.37 GO25-SIN-DIF Spot Gas Oil 0.05%
85.45 GO005-SIN GO 0.05 Diff
0.02 GO005-SIN-DIF Spot Gas Oil 0.001%
85.97 GO10-SIN GO 0.001 Diff
0.54 GO10-SIN-DIF Spot Jet/Kero
86.82 JET-SIN Jet/Kero Diff
For a list of derivatives prices, including margins, please
double click the RICs below.
Jet Cracks M1
Jet Cracks M2
Crack LGO-Brent M1
Crack LGO-Brent M2
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