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Jet Kerosene FOB Singapore Cargo: Jan. 2 - Mar. 19, 2013

Jet Kerosene FOB Singapore Cargo: Jan. 2 - Mar. 19, 2013

Cash differentials in Singapore physical jet/kerosene market tumble

Cash differentials in the Singapore physical jet/kerosene market tumbled 19 cents/barrel on the day to 47 cents/b -- the sharpest fall seen in recent weeks -- as trade on Singapore and North Asian barrels moves full swing into April, which spells the end of winter in North Asia.

The April/May backwardation on the Singapore jet swaps market narrowed from 31 cents/b March 18 to a mere 8 cents/b March 19 -- reflecting weakness on April clips. Soft aviation demand in Europe was also exerting bearish pressure on Asia.

Commentary continue below...

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“For the paper [in Singapore], it’s reacting to drops in the West,” said a trader.

Ballooning oil stocks in Singapore and global weakness from the aviation sector did little to support jet. “Seems lots of oil in Singapore and demand has been filled,” said a Singapore-based trader.

A trader reported a trade done in North Asia at Mean of Platts Singapore jet/kerosene assessments plus 10 cents/b, but this could not be confirmed.

Bids were heard at parity to MOPS jet/kerosene assessments. Previously, trades on North Asian clips were heard at MOPS jet/kerosene assessments plus 30-40 cents/b.

In the spot market, Indonesia’s state-owned Pertamina was understood to have finished talks on a portion of its second-quarter requirements.

Its trading arm Petral was looking to buy one to three 100,000-barrel cargoes of jet fuel every month for delivery to Jakarta, Surabaya and Batam between April and June.

A trading house in North Asia was heard awarded a portion of the cargoes at an undisclosed price, a trader said.

Separately in India, state-owned refiner Bharat Petroleum Corp. Ltd. canceled its tender to sell 15,000 mt of superior kerosene oil for March 27-29 loading from Kochi as the company has decided to put the cargo in the domestic market.

But BPCL may offer kerosene for export again in the coming months, a source familiar with the matter said.

The physical jet crack against front-month cash Dubai crude lost $1.21/b on the day to settle at $17.08/b March 19, while the physical regrade shed 40 cents/b from plus 21 cents/b to minus 19 cents/b March 19.

During the Platts Market on Close assessment process, Trafigura bought a 100,000-barrel cargo from BP for April 3-7 loading from Singapore at MOPS jet/kerosene assessments plus 50 cents/b.

BP also offered a competitive offer of MOPS plus 50 cents/b for a 100,000-barrel cargo loading over April 14-18 but the offer did not attract any buying interest.

In refinery news, Japanese refiner Cosmo Oil plans to shut the 100,000 b/d No. 1 CDU at its 220,000 b/d Chiba refinery in Tokyo Bay and the 85,000 b/d No. 6 CDU at its 175,000 b/d Yokkaichi refinery in central Japan for maintenance in autumn, a company official said March 19.

No specific dates are available. The turnarounds are expected to last for two months. Japan’s autumn is typically over October-November.

Additional Asia oil price charts:

Gasoil FOB Singapore Cargo
Fuel oil: FO 180, 380 CST 3.5%S FOB Singapore Cargo
Gasoline Unl 92 FOB Singapore Cargo
Naphtha C+F Japan Cargo
MTBE FOB Singapore

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