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Asia Distillates-Jet cracks scale 14-month peak on demand recovery hopes

Wed 12th May, 2021 7:25am
SINGAPORE, May 12 (Reuters) - Asian jet fuel refining margins rose for a third consecutive
session on Wednesday, scaling a 14-month peak, supported by expectations for firmer aviation
demand in the second half of this year.
    Refining profit margins, also known as cracks, for jet fuel  JETSGCKMc1  rose 18 cents to
$6.52 per barrel over Dubai crude during Asian trading hours, a level not seen since March last
year.
    The jet fuel cracks have surged 37% over the last one month, but they are still about 31%
lower than their 10-year seasonal average for this time of the year, Refinitiv Eikon data
showed.
    Despite hopes for more travel led by the Western countries, there is a huge disparity among
markets in terms of flight bookings as the rate of vaccinations and infections vary.
 urn:newsml:reuters.com:*:nL1N2MY07Q
    China is the only major market in Asia, where flight seat capacity this week exceeded
pre-pandemic levels of 2019 by 8.6%, while India's capacity was down 42.8% and Japan was 57.2%
lower, compared with the corresponding week in 2019, according to aviation data firm OAG.
    Cash differentials for jet fuel  JET-SIN-DIF , which flipped into a positive territory last
week, were at a premium of 4 cents a barrel to Singapore quotes on Wednesday.
    
    INDIA FUEL DEMAND
    - India's April fuel demand slipped from the previous month as the world's third largest oil
consumer bore the brunt of raging COVID-19 infections, with the prospect of further restrictions
weighing on the outlook.  urn:newsml:reuters.com:*:nL4N2MY2ZN  urn:newsml:reuters.com:*:nL4N2MY465
    - Diesel consumption, a key parameter linked to economic growth in India, fell 7.5% to 6.68
million tonnes in April from the previous month, but surged 105.5% year-on-year.
    - Domestic jet fuel sales in April were at about 410,000 tonnes, compared with 480,000
tonnes in March, and 60,000 tonnes in April 2020. 

    TENDERS  MDIS/TENDA 
    - India's Mangalore Refinery and Petrochemicals Ltd (MRPL) has offered 65,000 tonnes of
10ppm gasoil for June 2-4 loading from the port of New Mangalore. The tender closes on May 17
and has a same-day validity.
    
    SINGAPORE CASH DEALS  O/AS 
    - Four gasoil deals, one jet fuel trade
    
    OTHER NEWS
    - Oil prices edged up on Wednesday after a drop in U.S. crude inventories reinforced OPEC's
robust demand outlook, while the market awaited fresh updates on the Colonial Pipeline
outage. O/R 
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               72.51     1.35       1.90       71.16   GO-SIN 
 GO 0.5 Diff                        -2    -0.08       4.17       -1.92   GO-SIN-DIF 
 Spot Gas Oil 0.25%              72.66     1.33       1.86       71.33   GO25-SIN 
 GO 0.25 Diff                    -1.85     -0.1       5.71       -1.75   GO25-SIN-DIF 
 Spot Gas Oil 0.05%              72.81     1.27       1.78       71.54   GO005-SIN 
 GO 0.05 Diff                    -1.69    -0.15       9.74       -1.54   GO005-SIN-DIF 
 Spot Gas Oil 0.001%             74.47     1.54       2.11       72.93   GO10-SIN 
 GO 0.001 Diff                   -0.03     0.12     -80.00       -0.15   GO10-SIN-DIF 
 Spot Jet/Kero                   72.69     1.22       1.71       71.47   JET-SIN 
 Jet/Kero Diff                    0.04    -0.07     -63.64        0.11   JET-SIN-DIF 
                                                                                       
 For a list of derivatives prices, including margins,                                  
 please double click the RICs below.                                    
 Brent M1               BRENTSGMc1                                                     
 Gasoil M1              GOSGSWMc1                                                      
 Gasoil M1/M2           GOSGSPDMc1                                                     
 Gasoil M2              GOSGSWMc2                                                      
 Regrade M1             JETREGSGMc1                                                    
 Regrade M2             JETREGSGMc2                                                    
 Jet M1                 JETSGSWMc1                                                     
 Jet M1/M2              JETSGSPDMc1                                                    
 Jet M2                 JETSGSWMc2                                                     
 Gasoil 500ppm-Dubai    GOSGCKMc1                                                      
 Cracks M1                                                              
 Gasoil 500ppm-Dubai    GOSGCKMc2                                                      
 Cracks M2                                                              
 Jet Cracks M1          JETSGCKMc1                                                     
 Jet Cracks M2          JETSGCKMc2                                                     
 East-West M1           LGOAEFSMc1                                                     
 East-West M2           LGOAEFSMc2                                                     
 LGO M1                 LGOAMc1                                                        
 LGO M1/M2              LGOASPDMc1                                                     
 LGO M2                 LGOAMc2                                                        
 Crack LGO-Brent M1     LGOACKMc1                                                      
 Crack LGO-Brent M2     LGOACKMc2                                                      
 
 (Reporting by Koustav Samanta;
Editing by Vinay Dwivedi)
 ((koustav.samanta@thomsonreuters.com)(+65 6870 3503)(Reuters Messaging:
koustav.samanta.thomsonreuters.com@reuters.net))
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