Asian crude falls $2/b as EFS widens further, jet cracks firm
London (Quantum Commodity Intelligence) – Middle East crude oil prices retreated sharply Wednesday with the biggest daily fall for two weeks, as traders cited soaring COVID-19 cases in India hitting demand in Asia's second largest consumer country.
Dubai cash for June delivery was assessed at $63.70/b on April 21 (16:30 Singapore time), down $2.00/b from Tuesday's Singapore close, while DME Oman futures for June settled $63.85/b at the Asian close, down $2.07/b.
The Brent/Dubai EFS hit fresh 16-month highs, assessed at $3.54/b, making Brent-related barrels more expensive for Asian refiners. Cash Brent (BFOE) was assessed at $66.14/b, down $1.87/b versus Tuesday's Singapore close.
Products
In terms of products, the big mover in the markets today was jet fuel, where cracks firmed all along the curve on hopes that cargo demand would keep planes in the air.
The spot jet kero crack FOB Singapore was marked at $1.21/b versus June cash Brent, a rise of almost 40 c/b on the day.
No deals were heard though and the market remains in a steep contango, reflecting the very weak structure.
Elsewhere, diesel cracks fell back slightly, despite news that large trading houses were storing the fuel to make margins on the curve.
The 10ppm crack versus cash June Brent was marked at $3.13/b versus $3.31/b a day earlier basis FOB Singapore.
May cracks are a chunky $1.5/b higher at $4.18/b.
Two physical diesel deals were heard at a 40-50 c/b discount to the underlying swaps curve basis FOB Singapore, equivalent to a spot price of $69.27/b, according to Quantum data.
In lighter ends, gasoline cracks flatlined again on a spot basis with the 92 RON spot assessment tracking cash June Brent lower.
Spot cracks remain at $6.70/b, fluctuating in a $0.05/b range for the past four days.
One deal for 92 RON barrels FOB Singapore was heard at a $0.30/b discount to the underlying swaps.
Naphtha cracks again lost ground as spot demand for the petrochemical feedstock remained scant.
The spot crack versus June cash Brent was marked at $82.60/b, down $1.28/b on the day and holding at a $1.80/mt discount to front month swaps.
High sulfur fuel oil prices for both 180cst and 380cst fell around $8/mt on the day on weaker crude.
The cracks firmed, however, in line with swaps, as bunker demand was expected to rebound.
Marine Fuel spot demand fell back with deals heard at a $0.75/mt premium over the underlying swaps, down $1/mt in a week.
The flat price was pegged at $485/mt, down $14.50/mt on the day.