May 22, 2020 / 10:54 AM / 10 days ago

Asia Distillates-Jet cracks post weekly gain as domestic flights kindle demand hopes

    SINGAPORE, May 22 (Reuters) - Asian refining margins for jet
fuel rose on Friday, posting a steep weekly gain amid
expectations of a recovery in aviation demand as some regional
markets open up domestic routes after governments eased
in-country travel restrictions.
    Refining margins, also known as cracks, for jet fuel
 climbed to $1.83 a barrel over Dubai crude during
Asian trade on Friday, 10 cents higher from Thursday.
    The jet cracks, which were at a discount of 50 cents a
barrel below Dubai crude last Friday, flipped into premiums on
Tuesday and have jumped more than 400% this week, the highest
weekly percentage gain on record according to Refinitiv Eikon
data that goes back to early 2009.
    Planned refinery turnarounds and run cuts at regional
refineries have helped put a cap on excess supplies, while
domestic demand in markets such as China and Vietnam kindled
hopes for a gradual recovery, trade sources said.
    Cash discounts for jet fuel JET-SIN-DIF narrowed to $2.08
a barrel to Singapore quotes on Friday, compared with $2.61 on
    The front-month time spread for the aviation fuel in
Singapore narrowed its contango structure on
Friday to trade at a discount of $1.33 per barrel, compared with
$1.60 per barrel a day earlier. 
    Meanwhile, cash discounts for 10 ppm gasoil GO10-SIN-DIF
were at 76 cents per barrel to Singapore quotes on Friday,
compared with 77 cents on Thursday.
    Refining profit margins for gasoil with 10 ppm sulphur
content dropped to $4.83 a barrel over Dubai crude
on Friday, down from Thursday's $5.58 per barrel.

    - No jet fuel trade, no gasoil deals
    - An easing of coronavirus lockdown measures has driven a
strong recovery in gasoline demand as traffic congestion in some
of the world's capitals returns to the levels of a year ago,
data prepared for Reuters shows.
    - Oil fell over 5% on Friday towards $34 a barrel as
tensions rose between the United States and China, and doubts
grew about the pace of demand recovery from the coronavirus
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               34.99    -2.30      -6.17       37.29  GO-SIN
 GO 0.5 Diff                     -4.12    -0.01       0.24       -4.11  GO-SIN-DIF
 Spot Gas Oil 0.25%              36.13    -2.11      -5.52       38.24  GO25-SIN
 GO 0.25 Diff                    -2.99     0.17      -5.38       -3.16  GO25-SIN-DIF
 Spot Gas Oil 0.05%              36.54    -2.05      -5.31       38.59  GO005-SIN
 GO 0.05 Diff                    -2.57     0.24      -8.54       -2.81  GO005-SIN-DIF
 Spot Gas Oil 0.001%             38.35    -2.28      -5.61       40.63  GO10-SIN
 GO 0.001 Diff                   -0.76     0.01      -1.30       -0.77  GO10-SIN-DIF
 Spot Jet/Kero                   33.99    -0.84      -2.41       34.83  JET-SIN
 Jet/Kero Diff                   -2.08     0.53     -20.31       -2.61  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 Maju Samuel)
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