SINGAPORE, Sept 14 (Reuters) - Asia's cash differentials for jet fuel edged higher on Monday, but market participants said they expect the aviation fuel market to struggle in the near term as flights remain grounded due to COVID-19 restrictions. Cash discounts for jet fuelwere at $1.10 a barrel to Singapore quotes on Monday, compared with a discount of $1.22 a barrel on Friday. Refining margins for jet fuel flipped into a positive territory for the first time in more than three weeks, at 12 cents over Dubai crude during Asian trading hours on Tuesday. They were at a discount of 93 cents per barrel to Dubai crude at the end of last week. JET FUEL AN EXCEPTION - Global oil demand in transportation sectors, with the exception of jet fuel, could return to pre-pandemic levels by the fourth quarter of 2021, draining excess supplies from the market, Vitol's Chief Executive Officer Russell Hardy said. - "Jet fuel of course is one of the products that is hit the most and has become quite the bottleneck for refineries globally," Molly Morris, a senior vice president at Equinor said at the virtual Asia Pacific Petroleum Conference (APPEC) on Monday. - Colombian oil company Ecopetrol's Chief Executive Felipe Bayon said he expects the country's gasoline and diesel demand to return to pre-pandemic levels "probably by the end of this year, early next year", but jet fuel will take much longer. PLANE RECYCLERS BET ON PARTS BOOM - As COVID-19 grounds swaths of airline fleets, companies that profit off the dismantling and trade of aircraft parts are seeing early signs of an expected rebound in activity as carriers accelerate plane retirements. - While companies that store, dismantle, and buy and sell used aircraft parts see opportunity in parked planes, a sudden increase in the supply of used parts risks depressing prices in the estimated $3 billion a year industry, despite demand from airlines seeking to lower maintenance costs, executives and analysts say. SINGAPORE CASH DEALS - No gasoil deals, no jet fuel trades OTHER NEWS - Fossil fuel consumption is set to shrink for the first time in modern history as climate policies boost renewable energy while the coronavirus epidemic leaves a lasting effect on global energy demand, BP said in a forecast. ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 41.19 0.39 0.96 40.80 GO 0.5 Diff -2.06 0.07 -3.29 -2.13 Spot Gas Oil 0.25% 41.43 0.39 0.95 41.04 GO 0.25 Diff -1.82 0.07 -3.70 -1.89 Spot Gas Oil 0.05% 41.83 0.45 1.09 41.38 GO 0.05 Diff -1.42 0.13 -8.39 -1.55 Spot Gas Oil 0.001% 42.62 0.39 0.92 42.23 GO 0.001 Diff -0.63 0.07 -10.00 -0.70 Spot Jet/Kero 37.99 1.16 3.15 36.83 Jet/Kero Diff -1.10 0.12 -9.84 -1.22 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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