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 fuelwere 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 0.5 Diff -2.30 0.02 -0.86 -2.32 Spot Gas Oil 0.25% 47.96 1.37 2.94 46.59 GO 0.25 Diff -2.10 -0.10 5.00 -2.00 Spot Gas Oil 0.05% 48.16 1.46 3.13 46.70 GO 0.05 Diff -1.90 -0.01 0.53 -1.89 Spot Gas Oil 0.001% 49.58 1.44 2.99 48.14 GO 0.001 Diff -0.48 -0.03 6.67 -0.45 Spot Jet/Kero 43.00 1.37 3.29 41.63 Jet/Kero Diff -1.17 -0.04 3.54 -1.13 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)
Our Standards: The Thomson Reuters Trust Principles.