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Oil report

Asia Distillates-Jet fuel cracks rise amid slight uptick in aviation demand

    SINGAPORE, Oct 27 (Reuters) - Asian refining margins for jet fuel climbed on Tuesday as
travel bubbles help to nudge up the number of scheduled flights operating in the region.
    Refining margins, also known as cracks, for jet fuel in Singapore rose to $1.22
per barrel over Dubai crude during Asian trading hours, despite firmer feedstock crude prices.
They were at $1.05 per barrel a day earlier.
    The cracks, which have gained 67% over the last week, is also getting some support from
higher seasonal demand for closely-related kerosene ahead of winter months in Japan, which burns
the fuel to fend off chill.
    The number of scheduled flights operating globally in the week to Monday was 46% lower
compared with the corresponding week a year earlier, which represents the most positive
year-over-year performance since the week of March 30, according to aviation data firm OAG.
    Scheduled flights in India were down 39.8% year-on-year in the week to Monday, compared with
a 44.9% drop in the preceding week, while flights in South Korea were 39.4% lower from the
corresponding period last year, compared with a 40.2% drop in the previous week, OAG data
showed.
    
    NEW BUSINESS JET TRAVELERS HELP FUEL ORDER RECOVERY
    - Affluent travelers avoiding commercial flights during the pandemic are helping fuel a
recovery in pre-owned corporate aircraft transactions this year and reviving shoots of demand
for new planes even as the business aviation industry braces for a slump in 2020 deliveries.

    - Jets built as corporate aircraft, which can carry from roughly a handful to 19 travelers,
tout less risk of exposure to the coronavirus because their passengers can avoid airports and
generally select who comes on board.
    
    SINGAPORE CASH DEALS
    - No jet fuel trade, no gasoil deals
    
    OTHER NEWS
    - The use of liquefied natural gas (LNG) to fuel ships is gaining traction in Asia amid a
global push to use cleaner fuels in the sector and as abundant supplies are making the
super-chilled fuel more affordable than oil.
    - Oil prices rose on Tuesday after recent sharp losses, but market sentiment remains muted
as surging COVID-19 cases around the world hurt the outlook for crude demand while supply is
rising.
    
    ASSESSMENTS    
 MID-DISTILLATES                                                                        
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                41.73     1.27       3.14       40.46  GO-SIN
 GO 0.5 Diff                      -1.49     0.01      -0.67       -1.50  GO-SIN-DIF
 Spot Gas Oil 0.25%               42.03     1.27       3.12       40.76  GO25-SIN
 GO 0.25 Diff                     -1.19     0.01      -0.83       -1.20  GO25-SIN-DIF
 Spot Gas Oil 0.05%               42.23     1.27       3.10       40.96  GO005-SIN
 GO 0.05 Diff                     -0.99     0.01      -1.00       -1.00  GO005-SIN-DIF
 Spot Gas Oil 0.001%              42.63     1.27       3.07       41.36  GO10-SIN
 GO 0.001 Diff                    -0.59     0.01      -1.67       -0.60  GO10-SIN-DIF
 Spot Jet/Kero                    40.91     0.25       0.61       40.66  JET-SIN
 Jet/Kero Diff                    -0.62    -0.02       3.33       -0.60  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)
  
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