SINGAPORE, Feb 5 (Reuters) - Asian refining margins for jet fuel rose on Friday, posting their biggest weekly gain in two months, while cash discounts for the aviation fuel narrowed amid limited supplies.
The regional jet fuel market is expected to pick up further strength gradually as countries ease travel restrictions in coming months, although the usual seasonal boost during the Lunar New Year holidays would mostly remain dampened this year, trade sources said.
Refining margins, or cracks, for jet fuel JETSGCKMc1 rose to $4.43 per barrel over Dubai crude during Asian trading hours, the strongest since Jan. 18.
The cracks have gained 25.5% this week, the steepest weekly rise since Dec. 4.
"Our forecast is for traffic to return to half of 2019 levels in 2021," Alexandre de Juniac, director general and chief executive of the International Air Transport Association (IATA) said in a statement this week.
"But the proliferation of restrictions on travel that we have seen since the beginning of the year could make even that modest outlook very challenging," he added.
Global air passenger demand in 2020 was 65.9% lower than 2019 levels, while global air cargo demand last year was about 11% below 2019, IATA data showed on Wednesday.
Some market watchers believe aviation passenger demand might see a surge soon after the majority of travel restrictions are lifted as a lot of people are bored of not travelling.
Cash differentials for jet fuel JET-SIN-DIF were at a discount of 15 cents per barrel to Singapore quotes on Friday, compared with a 21-cent discount a day earlier.
ARA STOCKS
- Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub STK-GO-ARA rose 3.4% to 2.7 million tonnes in the week to Feb. 2, data from Dutch consultancy Insights Global showed. ARA/
- The data showed ARA jet fuel inventories STK-JET-ARA climbed 3.8% to 937,000 tonnes.
TENDERS
- Sri Lanka's Ceylon Petroleum Corp (Ceypetco) is seeking gasoil for delivery into Colombo over the eight months between May and December this year.
ISSUER
GRADE:
VOLUME:
DATE:
CLOSE (VALID) *Sri
BUY: 500ppm gasoil 280KB x 4
May 1-Dec 31, 2021 March 9 (90 Days) Lanka/Ceypet
co
*Sri
BUY: 500ppm gasoil 227.5KB x 5 May 1-Dec 31, 2021 March 9 (90 Days) Lanka/Ceypet
co
BUY: 10ppm gasoil 52.5KB x 5
May 1-Dec 31, 2021 March 9 (90 Days) *Sri
BUY: 500ppm gasoil 280KB x 4
May 1-Dec 31, 2021 March 9 (90 Days) Lanka/Ceypet
co
SINGAPORE CASH DEALS O/AS
- One gasoil deal, no jet fuel trades
OTHER NEWS
- Oil hit its highest level in a year on Friday, closing in on $60 a barrel on economic revival hopes and supply curbs by producer group OPEC and its allies. O/R
ASSESSMENTS MID-DISTILLATES
CASH ($/T)
ASIA CLOSE
Change % Change Prev Close RIC Spot Gas Oil 0.5%
63.71
0.82
1.30
62.89 GO-SIN GO 0.5 Diff
-1.6
-0.05
3.23
-1.55 GO-SIN-DIF Spot Gas Oil 0.25%
63.81
0.82
1.30
62.99 GO25-SIN GO 0.25 Diff
-1.5
-0.05
3.45
-1.45 GO25-SIN-DIF Spot Gas Oil 0.05%
64.08
0.82
1.30
63.26 GO005-SIN GO 0.05 Diff
-1.23
-0.05
4.24
-1.18 GO005-SIN-DIF Spot Gas Oil 0.001%
65.27
0.85
1.32
64.42 GO10-SIN GO 0.001 Diff
-0.04
-0.02
100.00
-0.02 GO10-SIN-DIF Spot Jet/Kero
62.77
0.96
1.55
61.81 JET-SIN Jet/Kero Diff
-0.15
0.06
-28.57
-0.21 JET-SIN-DIF
For a list of derivatives prices, including margins,
please double click the RICs below.
Brent M1
BRENTSGMc1
Gasoil M1
GOSGSWMc1
Gasoil M1/M2
GOSGSPDMc1
Gasoil M2
GOSGSWMc2
Regrade M1
JETREGSGMc1
Regrade M2
JETREGSGMc2
Jet M1
JETSGSWMc1
Jet M1/M2
JETSGSPDMc1
Jet M2
JETSGSWMc2
Gasoil 500ppm-Dubai
GOSGCKMc1
Cracks M1
Gasoil 500ppm-Dubai
GOSGCKMc2
Cracks M2
Jet Cracks M1
JETSGCKMc1
Jet Cracks M2
JETSGCKMc2
East-West M1
LGOAEFSMc1
East-West M2
LGOAEFSMc2
LGO M1
LGOAMc1
LGO M1/M2
LGOASPDMc1
LGO M2
LGOAMc2
Crack LGO-Brent M1
LGOACKMc1
Crack LGO-Brent M2
LGOACKMc2