asia

Asia Distillates-Jet fuel cracks slip as renewed travel curbs sour aviation outlook


    SINGAPORE, July 9 (Reuters) - Asian jet fuel refining margins slipped on Friday as a
resurgence in coronavirus cases in several key markets within the region dampened the aviation
outlook further.
    Refining margins, or cracks, for jet fuel in Singapore dropped 14 cents to
$6.13 per barrel over Dubai crude during Asian trading hours.
    The jet cracks have gained 1.3% this week, but still remains about 57% lower compared with
the levels for this time of the year in pre-pandemic 2019, Refinitiv Eikon data showed.
    "Lingering COVID-19 infections, resurgences and fear of more infectious variants look set to
prolong border restrictions across Asia," said Peter Lee, senior oil and gas analyst at Fitch
Solutions.
    Tokyo Olympics organisers have decided to hold the Games without spectators under
coronavirus restrictions as Japan struggles to stem a new wave of infections with a state of
emergency in the capital.
    Meanwhile, Thailand's health ministry on Thursday proposed new travel curbs and tighter
restrictions in high-risk areas to contain COVID-19 cases, and Vietnam's capital Hanoi also
imposed movement restrictions as authorities reported a record rise in cases.

    Although a slight uptick in some domestic flight routes have brought some respite to the
region's struggling aviation sector in recent weeks, the overall jet fuel demand is not expected
to climb to pre-crisis levels this year, traders and analysts said.
    Cash discounts for jet fuel JET-SIN-DIF were at 40 cents per barrel to Singapore quotes,
compared with a discount of 45 cents per barrel a day earlier.
    
    INVENTORIES
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA dropped 2.6% to 2.3 million tonnes in the week ended July 7, data from
Dutch consultancy Insights Global showed.
    - ARA jet fuel inventories STK-JET-ARA rose 5.2% this week to 1.1 million tonnes.
    - U.S. distillate stockpiles, which include diesel and heating oil, rose by 1.6
million barrels in the week to July 2, versus expectations for a 171,000-barrel rise, the Energy
Information Administration said on Thursday.
    
    SINGAPORE CASH DEALS
    - One jet fuel deal, no gasoil trades
   
    OTHER NEWS
    - Oil prices rose for a second day on Friday as data showed a draw in U.S. inventories, but
were heading for a weekly loss amid uncertainty over global supplies after an OPEC+ impasse.

    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               77.58     2.43       3.23       75.15  GO-SIN
 GO 0.5 Diff                     -2.29     0.03      -1.29       -2.32  GO-SIN-DIF
 Spot Gas Oil 0.25%              77.68     2.43       3.23       75.25  GO25-SIN
 GO 0.25 Diff                    -2.19     0.03      -1.35       -2.22  GO25-SIN-DIF
 Spot Gas Oil 0.05%              77.89     2.43       3.22       75.46  GO005-SIN
 GO 0.05 Diff                    -1.98     0.03      -1.49       -2.01  GO005-SIN-DIF
 Spot Gas Oil 0.001%             79.76     2.44       3.16       77.32  GO10-SIN
 GO 0.001 Diff                   -0.11     0.04     -26.67       -0.15  GO10-SIN-DIF
 Spot Jet/Kero                   77.12      2.4       3.21       74.72  JET-SIN
 Jet/Kero Diff                    -0.4     0.05     -11.11       -0.45  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 Uttaresh.V)
  



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