July 16, 2020 / 11:16 AM / in 24 days

Asia Distillates-Jet fuel cash discounts widen on muted demand

    SINGAPORE, July 16 (Reuters) - Asia's cash differentials for jet fuel weakened on Thursday
as regional airlines kept majority of their international flights grounded, while some
governments suspended travel routes due to a renewed wave of coronavirus infections.
    Cash discounts for jet fuel JET-SIN-DIF were at 37 cents a barrel to Singapore quotes,
compared with a 30-cent discount a day earlier. 
    The jet spot differentials, which are currently at their weakest seasonal levels in three
years, have found some support over the last two months as flights between domestic destinations
    But the aviation fuel market will continue to struggle as long as long haul flights remain 
out of operations, and the resurgence in coronavirus cases in recent weeks points to a prolonged
 ban on international travel, trade sources said.
    China's aviation authority said it would suspend Thai Lion Air from operating the
Bangkok-Guangzhou route and Thai AirAsia from operating the Bangkok-Tianjin routes for a week
from July 20 due to coronavirus cases.
    Singapore Airlines said it expected a hit to its revenue making ability in full-year 2021.
The airline said the SIA group carried 17,700 passengers in June, which was barely a fraction
compared with 3.2 million last year.
    Refining margins or cracks for jet fuel rose 72 cents to $1.92 a barrel over
Dubai crude during Asian trade on Thursday as crude oil prices eased.
    - Singapore onshore middle distillate stocks dropped 1.8% to 13.4 million barrels in the
week ended July 15, the lowest level in more than three months, Enterprise Singapore data
    - The weekly Singapore middle distillate inventories have averaged at 12.8 million barrels
so far in 2020, Reuters calculations showed. This week's stocks were 25.3% higher year-on-year.
    - U.S. distillate stockpiles fell by 453,000 barrels in the week to July 10 to 176.8 million
barrels, versus expectations for a 1.5 million-barrel rise, the Energy Information
Administration said on Wednesday.
    - No gasoil deals, no jet fuel trades
    - China's daily crude oil throughput in June climbed 9% from the same month a year earlier,
hitting the highest level on record, as refiners ramped up processing on healthy margins amid a
recovery in demand for gasoline and diesel.

 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 48.20    -0.64      -1.31       48.84  GO-SIN
 GO 0.5 Diff                       -0.93    -0.11      13.41       -0.82  GO-SIN-DIF
 Spot Gas Oil 0.25%                48.84    -0.64      -1.29       49.48  GO25-SIN
 GO 0.25 Diff                      -0.29    -0.11      61.11       -0.18  GO25-SIN-DIF
 Spot Gas Oil 0.05%                49.65    -0.52      -1.04       50.17  GO005-SIN
 GO 0.05 Diff                       0.52     0.01       1.96        0.51  GO005-SIN-DIF
 Spot Gas Oil 0.001%               49.94    -0.42      -0.83       50.36  GO10-SIN
 GO 0.001 Diff                      0.81     0.10      14.08        0.71  GO10-SIN-DIF
 Spot Jet/Kero                     44.05     0.13       0.30       43.92  JET-SIN
 Jet/Kero Diff                     -0.37    -0.07      23.33       -0.30  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 Rashmi Aich)
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