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Energy

Asia Distillates-Jet fuel cracks inch up, cash discounts narrow

    SINGAPORE, Aug 24 (Reuters) - Asian refining margins for jet fuel edged higher on Monday,
buoyed by hopes the aviation fuel market would likely find pockets of support in coming months
as countries gradually ease border and travel restrictions.
    Refining margins, also known as cracks, for jet fuel were at minus 37 cents a
barrel to Dubai crude during Asian trading hours, compared with a discount of 63 cents per
barrel on Friday.
    Singapore said on Friday it would reopen its borders to visitors from New Zealand and Brunei
from next month, in the city-state's first steps towards resuming leisure travel since it sealed
its borders in March to control COVID-19 outbreaks.
    The International Air Transport Association (IATA) has welcomed Singapore's move in easing
of border restrictions.
    "Our latest forecast indicates that travel demand will not return to 2019 levels until 2024,
a year later than had been previously expected. Key to the recovery is the opening of borders
and the lifting of travel restrictions and measures such as quarantine," Conrad Clifford, IATA's
regional vice president, Asia-Pacific said in a statement.
    "We urge other states in the region to look at ways to resume international travel safely,
including through the implementation of travel bubbles," Clifford added.
    Cash discounts for jet fuel JET-SIN-DIF were at 37 cents a barrel to Singapore quotes on
Monday, compared with a discount of 50 cents on Friday.
    
    CHINA FUEL EXPORTS
    - China's diesel exports fell for a fourth straight month in July,hitting their lowest level
in five years, as tepid demand overseas due to the COVID-19 pandemic forced Chinese refiners to
focus on domestic consumers.
    - China shipped out only 550,000 tonnes of diesel, about half of 1.04 million tonnes in June
and a third of 1.58 million tonnes in July 2019, data from the General Administration of Customs
showed on Sunday night.
    - Jet kerosene exports were down 77% from a year earlier to 320,000 tonnes last month.
    
    SINGAPORE CASH DEALS
    - No gasoil deals, no jet fuel trades
    
    OTHER NEWS
    - Crude oil prices rose on Monday as storms closed in on the Gulf of Mexico, shutting more
than half its oil production, and on signs of progress in development of a COVID-19 treatment.

    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                47.01    -0.06      -0.13       47.07  GO-SIN
 GO 0.5 Diff                      -2.31     0.02      -0.86       -2.33  GO-SIN-DIF
 Spot Gas Oil 0.25%               47.16    -0.06      -0.13       47.22  GO25-SIN
 GO 0.25 Diff                     -2.16     0.02      -0.92       -2.18  GO25-SIN-DIF
 Spot Gas Oil 0.05%               47.32    -0.06      -0.13       47.38  GO005-SIN
 GO 0.05 Diff                     -2.00     0.02      -0.99       -2.02  GO005-SIN-DIF
 Spot Gas Oil 0.001%              48.95    -0.06      -0.12       49.01  GO10-SIN
 GO 0.001 Diff                    -0.37     0.02      -5.13       -0.39  GO10-SIN-DIF
 Spot Jet/Kero                    43.39     0.32       0.74       43.07  JET-SIN
 Jet/Kero Diff                    -0.37     0.13     -26.00       -0.50  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 Ramakrishnan M.)
  
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