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

    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 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.

    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.
    - 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
    - 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
    - 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.
    
    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                                                                              
 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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