SINGAPORE, Sept 2 (Reuters) - Asia's cash differentials for jet fuel plunged to their biggest discounts in more than three months on Wednesday, while the prompt-month time spread for the aviation fuel in Singapore widened its contango structure. Cash discounts for jet fuelwidened by 2 cents to $1.22 a barrel to Singapore quotes, a level not seen since May 26. After slumping to record lows in early May, the aviation fuel found pockets of demand as domestic flights were restarted in some countries but with extended travel and border restrictions, passenger traffic pulled back and the spot differentials have plunged again. "Governments reopening and then closing borders or removing and then re-imposing quarantines does not give many consumers confidence to make travel plans, nor airlines to rebuild schedules," Alexandre de Juniac, Chief Executive of the International Air Transport Association (IATA) said in a statement on Tuesday. Refining margins, also known as cracks, for jet fuel were at a discount of $1.21 a barrel to Dubai crude during Asian trade, compared with minus $1.32 a barrel on Tuesday. "Asian jet cracks are in the red, reflecting weakness in the market fundamentals. Any rise in exports (from countries within the region) would add to the length in the market," said Serena Huang, Asia lead analyst at oil analytics firm Vortexa. JULY AIR PASSENGER DATA - IATA - Global air passenger traffic for July showed demand was 79.8% lower from a year earlier, which is a slight improvement from a 86.6% decline in June, the International Air Transport Association (IATA) said on Tuesday. - July passenger traffic for Asia-Pacific airlines dropped 96.5% compared with a year-earlier period, according to IATA data. INVENTORIES - Middle-distillate inventories in the Fujairah Oil Industry Zone rose 2.5% to 4.2 million barrels in the week ended Aug. 31, data via S&P Global Platts showed. - The weekly stocks in Fujairah have averaged 3.9 million barrels so far in 2020, compared with a weekly average of 2.4 million barrels in 2019, Reuters calculations showed. - Meanwhile, U.S. distillate fuel inventories fell by 1.4 million barrels, compared with expectations for a draw of 1.4 million barrels, data from industry group the American Petroleum Institute (API) showed on Tuesday. SINGAPORE CASH DEALS - Two gasoil deals, no jet fuel trades ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 47.05 0.16 0.34 46.89 GO 0.5 Diff -2.33 -0.01 0.43 -2.32 Spot Gas Oil 0.25% 47.25 0.16 0.34 47.09 GO 0.25 Diff -2.13 -0.01 0.47 -2.12 Spot Gas Oil 0.05% 47.45 0.16 0.34 47.29 GO 0.05 Diff -1.93 -0.01 0.52 -1.92 Spot Gas Oil 0.001% 48.78 0.07 0.14 48.71 GO 0.001 Diff -0.60 -0.10 20.00 -0.50 Spot Jet/Kero 42.31 0.26 0.62 42.05 Jet/Kero Diff -1.22 -0.02 1.67 -1.20 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 Shailesh Kuber)
Our Standards: The Thomson Reuters Trust Principles.