June 12, 2020 / 10:22 AM / a month ago

Asia Distillates-Jet cracks post weekly gain as travel curbs ease

    SINGAPORE, June 12 (Reuters) - Asian refining margins for jet fuel slipped on Friday, but
posted its second consecutive weekly gain as more countries ease their coronavirus-related
travel curbs, boosting the number of domestic and international flights back in operation.
    Refining margins, also known as cracks, for jet fuel have jumped nearly eight
times since last week. They were at $2.48 a barrel over Dubai crude on Friday, 34 cents lower
than the previous session. 
    Among oil products, jet fuel took the hardest hit from the COVID-19 pandemic that forced
global airlines to ground the majority of their fleets, but with more governments now gradually
relaxing travel restrictions the aviation fuel market is getting some support.
    The global aviation sector, however, is expected to take years to recover back to pre-crisis
levels as passengers continue to shy away from travelling until coronavirus concerns are
substantially ebbed, market watchers said.
    "Although flight tickets may be more expensive, nothing beats having to leave home and
travel again... I reckon if there's no second wave of the virus, steady jet fuel demand will
come back by year-end," a Singapore-based jet fuel trader said.
    Airline Virgin Australia said on Thursday it would double domestic capacity by early July as
state border restrictions ease and demand grows, joining rival Qantas Airways in adding a
significant number of flights.
    Meanwhile, Japan was reported to likely restart business trips to and from Australia, New
Zealand, Vietnam and Thailand in the next few months.
    Cash discounts for jet fuel JET-SIN-DIF narrowed to 49 cents a barrel to Singapore quotes
on Friday, compared with 52 cents a barrel on Thursday.
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 3.3% to 2.85 million tonnes in the week to June 11, data from
Dutch consultancy Insights Global showed.
    - ARA jet fuel inventories STK-JET-ARA climbed 3.7% to 902,000 tonnes, the data showed.
    - Compared with a year earlier, jet fuel stocks were 8.4% higher, while gasoil inventories
were down 4.6%.
    
    SINGAPORE CASH DEALS
    - No jet fuel trade, no gasoil deal
    
    ASSESSMENTS    
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               42.39    -2.51      -5.59       44.90  GO-SIN
 GO 0.5 Diff                     -1.54    -0.01       0.65       -1.53  GO-SIN-DIF
 Spot Gas Oil 0.25%              43.17    -2.51      -5.49       45.68  GO25-SIN
 GO 0.25 Diff                    -0.76    -0.01       1.33       -0.75  GO25-SIN-DIF
 Spot Gas Oil 0.05%              43.86    -2.51      -5.41       46.37  GO005-SIN
 GO 0.05 Diff                    -0.07    -0.01      16.67       -0.06  GO005-SIN-DIF
 Spot Gas Oil 0.001%             44.53    -2.49      -5.30       47.02  GO10-SIN
 GO 0.001 Diff                    0.60     0.01       1.69        0.59  GO10-SIN-DIF
 Spot Jet/Kero                   39.57    -2.27      -5.43       41.84  JET-SIN
 Jet/Kero Diff                   -0.49     0.03      -5.77       -0.52  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 Amy Caren Daniel)
  
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