Week 16 Pricing Analyst Update – Carrie Ho – APAC – Distillate – Part 1
Asian physical jet fuel market
– Singapore jet fuel flat price fell $11/bl w-o-w to $205.36/bl (16 Apr), while cash differentials rose $4.59/bl to $34.02/bl.
– Market briefly supported by a fire at Australia’s 120 kb/d Geelong refinery affecting the alkylation unit; diesel and jet output continue but at reduced rates as a precaution.
– Regional jet demand edged slightly higher this week, but gains remain capped by flight cancellations, route cuts, and high prices limiting air freight demand.
– Singapore regrade (based on physical jet and gasoil prints) rose $27.83/bl w-o-w to $33.16/bl on 16 Apr, driven mainly by sharper price declines in diesel rather than strong jet fundamentals.
– Potential upside from East-to-West arbitrage demand in the coming weeks, said traders.
– Focus on Europe: distillate demand may rebound after recent stock drawdowns to Asia, while reduced US resupply (with barrels moving East) could tighten the Atlantic Basin, said traders.
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