Asia Distillates-Jet cracks inch up; aviation demand struggles

    SINGAPORE, Sept 22 (Reuters) - Asian refining margins for jet fuel edged higher on Tuesday,
but traders remained concerned the market for the aviation fuel would stay depressed for the
remainder of the year due to lesser number of scheduled flights operating in the region.
    Refining margins or cracks for jet fuel in Singapore were at a discount of 41
cents per barrel to Dubai crude during Asian trade on Tuesday, compared with minus 88 cents per
barrel a day earlier.
    The jet fuel cracks, which also determines the profitability of closely-related kerosene,
might find some support once winter heating demand for kerosene picks up, trade sources said.
    "Asian jet markets will continue to struggle until the uptick in Northeast Asian kerosene
heating demand kicks in later in the fourth quarter of 2020, as the rest of the region lags
behind China," consultancy Energy Aspects said in a monthly note.
    "Chinese domestic flight numbers are higher year-on-year in September, meaning the country
can provide little further support as regional supplies rise from present levels."
    Scheduled flights in China were down by 2.3% year-on-year in the week to Monday, compared
with a 4.2% drop in the preceding week, data from aviation data firm OAG data showed.
    Cash discounts for jet fuel JET-SIN-DIF were at $1.17 a barrel to Singapore quotes on
Tuesday, 4 cents lower from Monday.
    The regrade, which is the price spread between jet and gasoil, for October stood at a
discount of $2.62 a barrel on Tuesday, prompting refiners to continue blending jet fuel into the
diesel pool.
    - India's diesel exports rose 35.4% to 2.79 million tonnes in August from 2.06 million
tonnes in July, government data showed on Monday. The August exports jumped about 18% year on
year, the data showed.
    - The country exported about 140,000 tonnes of jet fuel in August, compared with 230,000
tonnes in July and 540,000 tonnes in August 2019, data showed.
    - No gasoil deals, no jet fuel trades

    - Indian Oil Corp (IOC), the country's largest refiner, is reviewing its refinery
expansion plans because of a gradual rise in use of cleaner fuels and changing demand patterns
in Asia's third-largest economy, its chairman said.
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                42.19    -0.61      -1.43       42.80  GO-SIN
 GO 0.5 Diff                      -2.01     0.02      -0.99       -2.03  GO-SIN-DIF
 Spot Gas Oil 0.25%               42.44    -0.61      -1.42       43.05  GO25-SIN
 GO 0.25 Diff                     -1.76     0.02      -1.12       -1.78  GO25-SIN-DIF
 Spot Gas Oil 0.05%               42.90    -0.61      -1.40       43.51  GO005-SIN
 GO 0.05 Diff                     -1.30     0.03      -2.26       -1.33  GO005-SIN-DIF
 Spot Gas Oil 0.001%              43.63    -0.55      -1.24       44.18  GO10-SIN
 GO 0.001 Diff                    -0.58     0.07     -10.77       -0.65  GO10-SIN-DIF
 Spot Jet/Kero                    39.91    -0.04      -0.10       39.95  JET-SIN
 Jet/Kero Diff                    -1.17     0.04      -3.31       -1.21  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)