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Asia Distillates-Jet fuel cracks post weekly rise, cash discounts narrow

Published 2021-01-29, 05:31 a/m
© Reuters.

SINGAPORE, Jan 29 (Reuters) - Asian refining margins for jet fuel eased on Friday, but posted a weekly rise, as the aviation market awaits a gradual pick-up in flight schedules in coming months with COVID-19 vaccinations helping push travellers take back to the skies.

But with fresh coronavirus outbreaks in countries such as China and Vietnam, especially ahead of the Lunar New Year holidays in February, the regional aviation sector is expected to miss out the seasonal demand boost this year, trade sources said. margins, also known as cracks, for jet fuel JETSGCKMc1 dipped to $3.53 per barrel over Dubai crude during Asian trading hours, compared with $3.74 per barrel a day earlier.

The cracks, however, have gained about 4% this week, Refinitiv Eikon data showed, although they are currently at their weakest levels for this time of the year on record.

"Global jet markets should continue to strengthen gradually in the first quarter of 2021, as low supplies and the demand optimism stemming from the rollout of vaccination programmes outweigh current demand weakness," consultancy Energy Aspects said in a monthly note.

"Already low flight numbers limit further downside to demand while supply remains constrained by low runs amid weak margins... Mass inoculation programmes will be in full swing in a number of countries by the end of H1 21, lifting market optimism for a swifter demand recovery this year."

Cash differentials for jet fuel JET-SIN-DIF were at a discount of 21 cents per barrel to Singapore quotes on Friday, compared with a discount of 23 cents per barrel on Thursday.

MAJORITY OF PILOTS NO LONGER FLYING -SURVEY

- More than half of the world's airline pilots are no longer flying for a living amid the plunge in demand during the pandemic, according to a new survey, and those that are still flying feel less valued by their employers. A poll of nearly 2,600 pilots by UK-based GOOSE Recruitment and industry publication FlightGlobal, released on Thursday, found only 43% were doing the job they had trained for, with 30% unemployed, 17% furloughed and 10% in non-flying roles.

ARA STOCKS

- Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub STK-GO-ARA dropped 3.4% to 2.6 million tonnes in the week to Jan. 28, data from Dutch consultancy Insights Global showed. ARA/

- The data showed ARA jet fuel inventories STK-JET-ARA dipped 2.9% to 903,000 tonnes.

SINGAPORE CASH DEALS O/AS

- Four gasoil deals, no jet fuel trades

OTHER NEWS

- Britain is banning direct passenger flights to and from the United Arab Emirates from Friday, shutting down the world's busiest international airline route from Dubai to London. MID-DISTILLATES

CASH ($/T)

ASIA CLOSE

Change % Change Prev Close RIC Spot Gas Oil 0.5%

58.82

-0.2

-0.34

59.02 GO-SIN GO 0.5 Diff

-1.67

0.01

-0.60

-1.68 GO-SIN-DIF Spot Gas Oil 0.25%

58.92

-0.2

-0.34

59.12 GO25-SIN GO 0.25 Diff

-1.57

0.01

-0.63

-1.58 GO25-SIN-DIF Spot Gas Oil 0.05%

59.19

-0.2

-0.34

59.39 GO005-SIN GO 0.05 Diff

-1.3

0.01

-0.76

-1.31 GO005-SIN-DIF Spot Gas Oil 0.001%

60.4

-0.07

-0.12

60.47 GO10-SIN GO 0.001 Diff

-0.09

0.15

-62.50

-0.24 GO10-SIN-DIF Spot Jet/Kero

57.87

-0.19

-0.33

58.06 JET-SIN Jet/Kero Diff

-0.21

0.02

-8.70

-0.23 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

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