Oil report

Asia Distillates-Jet cash discounts narrow amid slight uptick in scheduled flights

    SINGAPORE, Sept 29 (Reuters) - Asia's cash differentials for jet fuel climbed to their
strongest in a month on Tuesday, buoyed by hopes that the regional aviation sector would likely
find some support from a slow but gradual increase in the number of operating flights in the
coming weeks.
    Cash discounts for jet fuel JET-SIN-DIF narrowed by 5 cents to 95 cents a barrel to
Singapore quotes on Tuesday, a level not seen since Aug. 27.
    Global scheduled flights in the week to Monday were 46.7% below last year, which is the most
positive level of flights since March 30, aviation data firm OAG said.
    China's total domestic and international flights in the week to Sept. 28 have exceeded the
number for the same week last year by 1.1%, OAG data showed.
    "Their aviation industry is now exhibiting year-over-year growth, albeit that the growth is
very much skewed to the domestic market," OAG said in a statement.
    Scheduled flights in India were down 47.4% year-on-year in the week to Monday, compared with
a 50% drop in the prior week, while flights in Australia were 73.1% lower from the corresponding
period last year, compared with a 74.1% drop in the previous week, OAG data showed.
    Refining margins, also known as cracks, for jet fuel in Singapore were at a
discount of 36 cents per barrel to Dubai crude during Asian trade on Tuesday, compared with
minus 16 cents per barrel a day earlier.
    The jet cracks are expected to find some support once winter heating demand for kerosene
gathers pace, trade sources said, especially as some weather forecast models are projecting
cooler-than-usual winter temperatures in Japan this year.
    Jet fuel and kerosene belong to the same grade of oil products with jet margins determining
the profitability of both.
    - One gasoil deal, one jet fuel trade
    - Singapore Airlines plans to turn one of its grounded jumbo jets into a pop-up restaurant
and offer home-delivered plane food as part of a series of initiatives to try and re-engage
customers who have not been able to travel due to the coronavirus pandemic.
    - Oil prices fell on Tuesday as Europe and the United States grappled with a surge in new
coronavirus infections and investors were cautious ahead of the first U.S. presidential debate.

 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 42.66     0.98       2.35       41.68  GO-SIN
 GO 0.5 Diff                       -1.96    -0.01       0.51       -1.95  GO-SIN-DIF
 Spot Gas Oil 0.25%                43.06     0.98       2.33       42.08  GO25-SIN
 GO 0.25 Diff                      -1.56    -0.01       0.65       -1.55  GO25-SIN-DIF
 Spot Gas Oil 0.05%                43.36     0.98       2.31       42.38  GO005-SIN
 GO 0.05 Diff                      -1.26    -0.01       0.80       -1.25  GO005-SIN-DIF
 Spot Gas Oil 0.001%               44.09     1.01       2.34       43.08  GO10-SIN
 GO 0.001 Diff                     -0.53     0.02      -3.64       -0.55  GO10-SIN-DIF
 Spot Jet/Kero                     40.95     0.30       0.74       40.65  JET-SIN
 Jet/Kero Diff                     -0.95     0.05      -5.00       -1.00  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 Aditya Soni)