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Oil report

Asia Distillates-Jet fuel cracks dip on weak aviation demand

    SINGAPORE, Oct 14 (Reuters) - Asian refining margins for jet fuel dipped on Wednesday as
coronavirus-led travel restrictions continued to impede aviation demand with thousands of
flights still grounded across the region.
    Despite weaker raw material crude prices, refining profit margins, or cracks, for jet fuel
in Singapore slipped to $1.52 per barrel over Dubai crude during Asian trading
hours. They were at $1.55 per barrel a day earlier.
    The cracks found some support earlier this month as demand for closely-related heating oil
kerosene picked up ahead of North Asia's winter, but industry analysts warned the margins would
not fully recover until the coronavirus-hit aviation sector is back to normal.
    "The COVID-19 pandemic continues to devastate the aviation industry. International traffic
has all but disappeared — we are carrying only about 10% of normal levels," International Air
Transport Association (IATA) Chief Executive Alexandre de Juniac said in a statement on Tuesday.
    "Domestic travel is picking up in some markets, but this is not enough to sustain the
industry."
    Among Asian aviation markets hurt by the pandemic, scheduled flights in Malaysia were down
73.1% year-on-year in the week to Monday, compared with a 64.5% drop in the prior week,
according to aviation data firm OAG.
    Around 90% of all flights from Malaysian airports are for domestic routes, which have also
fallen by 40% in the most recent week due to a resurgence in COVID-19 cases and new travel
restrictions, OAG data showed.
    The country's national airline, Malaysia Airlines, is struggling to make payments owed to
creditors and lessors amid the pandemic, raising doubts about its survival.
    Cash discounts for jet fuel JET-SIN-DIF were at 52 cents a barrel to Singapore quotes on
Wednesday, compared with a 48-cent discount on Tuesday.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone rose 14.8% to 4.4 million
barrels in the week ended Oct. 12, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.9 million barrels so far in 2020, compared
with the weekly average of 2.4 million barrels in 2019, Reuters calculations showed.
    
    SINGAPORE CASH DEALS
    - Two jet fuel trades, no gasoil deals
    
    OTHER NEWS
    - Sales of marine fuel from the Chinese port of Zhoushan, the country's top supplier of
shipping fuel, in first nine months of 2020 rose nearly 18% from a year earlier, a local
government official said on Wednesday.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 Cash ($/T)             Asia Close       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                43.43    -0.37      -0.84       43.80  GO-SIN
 GO 0.5 Diff                      -1.71     0.01      -0.58       -1.72  GO-SIN-DIF
 Spot Gas Oil 0.25%               43.89    -0.37      -0.84       44.26  GO25-SIN
 GO 0.25 Diff                     -1.25     0.01      -0.79       -1.26  GO25-SIN-DIF
 Spot Gas Oil 0.05%               44.03    -0.37      -0.83       44.40  GO005-SIN
 GO 0.05 Diff                     -1.11     0.01      -0.89       -1.12  GO005-SIN-DIF
 Spot Gas Oil 0.001%              44.67    -0.39      -0.87       45.06  GO10-SIN
 GO 0.001 Diff                    -0.48    -0.02       4.35       -0.46  GO10-SIN-DIF
 Spot Jet/Kero                    42.59     0.28       0.66       42.31  JET-SIN
 Jet/Kero Diff                    -0.52    -0.04       8.33       -0.48  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 Vinay Dwivedi)
  
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