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 fuelwere 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 0.5 Diff -1.71 0.01 -0.58 -1.72 Spot Gas Oil 0.25% 43.89 -0.37 -0.84 44.26 GO 0.25 Diff -1.25 0.01 -0.79 -1.26 Spot Gas Oil 0.05% 44.03 -0.37 -0.83 44.40 GO 0.05 Diff -1.11 0.01 -0.89 -1.12 Spot Gas Oil 0.001% 44.67 -0.39 -0.87 45.06 GO 0.001 Diff -0.48 -0.02 4.35 -0.46 Spot Jet/Kero 42.59 0.28 0.66 42.31 Jet/Kero Diff -0.52 -0.04 8.33 -0.48 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)
Our Standards: The Thomson Reuters Trust Principles.