SINGAPORE, Jan 22 (Reuters) - Asian jet fuel refining margins dropped for a fourth consecutive session on Friday, posting their biggest weekly decline in three months, as renewed COVID-19 restrictions rattle the airline industry with number of operating flights decreasing globally.
Refining profits for jet fuel JETSGCKMc1 dropped to $3.40 per barrel over Dubai crude during Asian trading hours, a level not seen since Jan. 7. They were at $4.04 per barrel on Thursday.
The refining margins or cracks for the aviation fuel in Singapore fell 22.2% this week, the steepest weekly drop since Oct. 23, Refinitiv Eikon data showed.
Fresh coronavirus cases in China threatens fuel demand recovery and the jet fuel market is expected to be badly hit, market watchers said.
China's business hub of Shanghai has reported its first locally transmitted cases in two months and Beijing is urging people not to travel during the upcoming Lunar New Year holidays. jet fuel demand saw a sharp pullback in recent weeks amid widespread flight cancellations in Hebei and Northeast China," consultancy FGE said in a note.
"Meanwhile, China continues to enforce strict border controls... In our base case, we expect jet fuel demand to move sideways in February, with further downside potential," FGE analysts said.
Elsewhere, Hong Kong is set to require flight crew entering the Asian financial hub for more than two hours to quarantine in a hotel for two weeks. differentials for jet fuel JET-SIN-DIF widened to a discount of 26 cents per barrel to Singapore quotes on Friday, compared with a 24-cent discount a day earlier.
ARA STOCKS
- Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub STK-GO-ARA rose 6.1% to 2.7 million tonnes in the week to Jan. 21, data from Dutch consultancy Insights Global showed. ARA/
- The data showed ARA jet fuel inventories STK-JET-ARA dipped 0.4% to 930,000 tonnes.
- Compared with a year earlier, ARA gasoil inventories have climbed 11.5%, while jet fuel stocks were 69.7% higher.
SINGAPORE CASH DEALS O/AS
- No gasoil deals, no jet fuel trades
ASSESSMENTS MID-DISTILLATES
CASH ($/T)
ASIA CLOSE
Prev Close RIC Spot Gas Oil 0.5%
58.46
59.23 GO-SIN GO 0.5 Diff
-1.67
-1.66 GO-SIN-DIF Spot Gas Oil 0.25%
58.56
59.33 GO25-SIN GO 0.25 Diff
-1.57
-1.56 GO25-SIN-DIF Spot Gas Oil 0.05%
58.81
59.58 GO005-SIN GO 0.05 Diff
-1.32
-1.31 GO005-SIN-DIF Spot Gas Oil 0.001%
59.89
60.66 GO10-SIN GO 0.001 Diff
-0.24
-0.23 GO10-SIN-DIF Spot Jet/Kero
57.86
58.95 JET-SIN Jet/Kero Diff
-0.26
-0.24 JET-SIN-DIF
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