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Energy

Asia Distillates-Jet fuel crack plunges to over 3-1/2 month low

    SINGAPORE, Aug 31 (Reuters) - Asian refining margins for jet fuel dropped on Monday to their
weakest level in more than 3-1/2 months as airlines continue to struggle with muted passenger
demand amid pandemic-induced extended border restrictions.
    Refining margins, also known as cracks, for jet fuel were at a discount of
$1.92 a barrel to Dubai crude during Asian trading hours, the lowest since May 14. They were at
minus $1.75 a barrel on Friday.
    A majority of long-haul international flights still remain grounded due to ongoing
restrictions on air travel, forcing cash-strapped airlines to resort to extreme measures such as
laying off employees or sending them on unpaid leaves.
    Travellers continue to shy away from flying in order to avoid infections given the close
proximity of passengers in an air-conditioned space where viruses can spread, and also to stay
away from quarantine periods and medical tests, market watchers said.
    Cash discounts for jet fuel JET-SIN-DIF were at $1.17 a barrel to Singapore quotes on
Monday, compared with a discount of $1.13 a barrel on Friday.
    
    SINOPEC SEES GROWTH IN CHINA'S FUEL DEMAND
    - China Petroleum & Chemical Corp expects China's refined fuel consumption to
swing back to positive growth in the second half of this year and said it will accelerate its
drilling for domestic natural gas.
    - Asia's biggest oil refiner, known as Sinopec, reported its first interim loss on record
late on Sunday as the coronavirus hobbled industrial activity and curbed travel, cutting fuel
demand. However, with China's economic recovery taking hold, end-user demand for gasoline,
diesel and kerosene should rise 1% in the second half from a year earlier, after a 13% fall in
the first half, a company vice president said at a briefing.

    TENDERS
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) has offered 65,000 tonnes of
10ppm gasoil for Sept. 22-24 loading from the port of New Mangalore.
    - The tender closes on Sept. 4 and has a same-day validity.
    
    SINGAPORE CASH DEALS
    - Two gasoil deals, no jet fuel trades
    
    OTHER NEWS
    - Emirates airline has received 7.3 billion dirhams ($2 billion) from the government of
Dubai as it faces a cash crunch caused by the COVID-19 pandemic, a bond prospectus seen by
Reuters shows.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                47.76     1.49       3.22       46.27  GO-SIN
 GO 0.5 Diff                      -2.30     0.02      -0.86       -2.32  GO-SIN-DIF
 Spot Gas Oil 0.25%               47.96     1.37       2.94       46.59  GO25-SIN
 GO 0.25 Diff                     -2.10    -0.10       5.00       -2.00  GO25-SIN-DIF
 Spot Gas Oil 0.05%               48.16     1.46       3.13       46.70  GO005-SIN
 GO 0.05 Diff                     -1.90    -0.01       0.53       -1.89  GO005-SIN-DIF
 Spot Gas Oil 0.001%              49.58     1.44       2.99       48.14  GO10-SIN
 GO 0.001 Diff                    -0.48    -0.03       6.67       -0.45  GO10-SIN-DIF
 Spot Jet/Kero                    43.00     1.37       3.29       41.63  JET-SIN
 Jet/Kero Diff                    -1.17    -0.04       3.54       -1.13  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 Shailesh Kuber)
  
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