Oil report

Asia Distillates-Jet fuel cash differentials plunge to lowest in over 3 months

    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 fuel JET-SIN-DIF widened 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 $1.32 a barrel on Tuesday.
    "Asian jet cracks are in the red, reflecting weakness in the market fundamentals. Any rise
in exports (from countries within the region) would add to the length in the market," said
Serena Huang, Asia lead analyst at oil analytics firm Vortexa.
    - Global air passenger traffic for July showed demand was 79.8% lower from a year earlier,
which is a slight improvement from a 86.6% decline in June, the International Air Transport
Association (IATA) said on Tuesday.
    - July passenger traffic for Asia-Pacific airlines dropped 96.5% compared with a
year-earlier period, according to IATA data.
    - Middle-distillate inventories in the Fujairah Oil Industry Zone rose 2.5% to 4.2 million
barrels in the week ended Aug. 31, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.9 million barrels so far in 2020, compared
with a weekly average of 2.4 million barrels in 2019, Reuters calculations showed.
    - Meanwhile, U.S. distillate fuel inventories fell by 1.4 million barrels, compared with
expectations for a draw of 1.4 million barrels, data from industry group the American Petroleum
Institute (API) showed on Tuesday.
    - Two gasoil deals, no jet fuel trades
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               47.05     0.16       0.34       46.89  GO-SIN
 GO 0.5 Diff                     -2.33    -0.01       0.43       -2.32  GO-SIN-DIF
 Spot Gas Oil 0.25%              47.25     0.16       0.34       47.09  GO25-SIN
 GO 0.25 Diff                    -2.13    -0.01       0.47       -2.12  GO25-SIN-DIF
 Spot Gas Oil 0.05%              47.45     0.16       0.34       47.29  GO005-SIN
 GO 0.05 Diff                    -1.93    -0.01       0.52       -1.92  GO005-SIN-DIF
 Spot Gas Oil 0.001%             48.78     0.07       0.14       48.71  GO10-SIN
 GO 0.001 Diff                   -0.60    -0.10      20.00       -0.50  GO10-SIN-DIF
 Spot Jet/Kero                   42.31     0.26       0.62       42.05  JET-SIN
 Jet/Kero Diff                   -1.22    -0.02       1.67       -1.20  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 Shailesh Kuber)