July 30, 2020 / 10:57 AM / 9 days ago

Asia Distillates-Jet fuel cash discounts widen on muted aviation demand

    SINGAPORE, July 30 (Reuters) - Asia's jet fuel cash differentials slumped to their
biggest discounts in nearly a month on Thursday, while refining margins for the
aviation fuel dropped for a second straight session as rising COVID-19 cases globally
kept air travel demand subdued.
    Cash discounts for jet fuel JET-SIN-DIF were at 45 cents a barrel to Singapore
quotes on Thursday, the widest since July 3. They were at a discount of 40 cents a
barrel on Wednesday.
    The jet spot market would likely stay in discounts in the near term, as global
airlines struggle due to travellers refraining from flying not just to keep away from
infections but also to avoid inconveniences such as quarantine periods and medical
tests, trade sources said.
    Singapore Airlines Ltd warned passenger capacity may remain at less than
half of pre-pandemic levels by its March 2021 year-end after slumping to a
first-quarter net loss on Wednesday.
    Meanwhile, Interglobe Aviation Ltd, which runs India's largest airline
Indigo, also posted its steepest quarterly loss in at least five years.
    Refining margins or cracks for jet fuel dropped to $1.56 a barrel over
Dubai crude during Asian trading hours on Thursday, down 25 cents from a day earlier.
    The cracks have averaged $1.85 a barrel over Dubai crude so far this month,
compared with an average of $2.01 per barrel in June, Refinitiv Eikon data showed.
    - Singapore onshore middle distillate stocks dropped 3.1% to 13.4 million barrels
in the week ended July 29, Enterprise Singapore data showed. O/SING1
    - The weekly Singapore middle distillate inventories have averaged at 12.9 million
barrels so far in 2020, Reuters calculations showed. This week's stocks were up 31.3%
    - U.S. distillate stockpiles rose last week to 178.4 million barrels, their highest
since December 1982, U.S. Energy Information Administration data showed on Wednesday.

    - No jet fuel trades, no gasoil deals 
    -  Oil prices slipped on Thursday, weighed down by concerns that surging
coronavirus infections around the globe could jeopardize a recovery in fuel demand just
as major oil producers are set to raise output.
    - Two refiners in South Korea, the world's fifth largest crude oil importer, posted
their biggest losses ever in the first half when oil prices slumped as the COVID-19
pandemic ravaged fuel demand.
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               48.74    -0.20      -0.41       48.94  GO-SIN
 GO 0.5 Diff                     -0.90     0.02      -2.17       -0.92  GO-SIN-DIF
 Spot Gas Oil 0.25%              49.38    -0.20      -0.40       49.58  GO25-SIN
 GO 0.25 Diff                    -0.26     0.02      -7.14       -0.28  GO25-SIN-DIF
 Spot Gas Oil 0.05%              49.62    -0.39      -0.78       50.01  GO005-SIN
 GO 0.05 Diff                    -0.02    -0.17    -113.33        0.15  GO005-SIN-DIF
 Spot Gas Oil 0.001%             49.83    -0.23      -0.46       50.06  GO10-SIN
 GO 0.001 Diff                    0.20     0.00       0.00        0.20  GO10-SIN-DIF
 Spot Jet/Kero                   43.98    -0.61      -1.37       44.59  JET-SIN
 Jet/Kero Diff                   -0.45    -0.05      12.50       -0.40  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 Rashmi Aich)
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