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Asia Distillates-Jet fuel cracks gain amid lukewarm aviation demand

    SINGAPORE, June 2 (Reuters) - Asian refining margins for jet fuel rose for a second straight
session on Wednesday, thanks to a slight improvement in global aviation demand as COVID-19
vaccinations are helping more passengers to return to the skies.
    Refining margins, also known as cracks, for jet fuel in Singapore inched higher
by 6 cents to $6.36 per barrel over Dubai crude during Asian trading hours, their strongest
since May 21.
    Global scheduled flight capacity rose 6.4% this week, but they still remained 40.4% lower
compared with the corresponding week in pre-pandemic 2019, according to aviation data firm OAG.
    Scheduled flight seats in Japan were 10.5% higher in the week to Monday, while scheduled
seats in India were up 3.2% on-week, OAG data showed.
    Global capacity in May was 279.9 million seats, 4.9% higher than 266.8 million seats in
April, but 43% lower than 488.2 million seats in May 2019, the data firm said.
    Cash discounts for jet fuel JET-SIN-DIF widened 20 cents per barrel to Singapore quotes,
while the June/July time spread for the aviation fuel in Singapore traded at minus
30 cents per barrel.
    Meanwhile, cash differentials for 10 ppm gasoil GO10-SIN-DIF flipped into a discount of 12
cents per barrel on Wednesday, while the prompt-month spread turned into a contango of minus 3
cents per barrel.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone rose 12.6% to 3.8 million
barrels in the week ended May 31, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.9 million barrels this year, compared with
4.2 million barrels in 2020, Reuters calculations showed.
    
    TENDERS
    - India's state-run refiner Indian Oil Corporation (IOC) has offered a combined
cargo of light cycle oil (LCO) and high speed diesel (HSD) totalling 15,400-16,460 tonnes for
loading over June 17-18 from Paradip, trade sources said.
    - IOC has also offered another combined cargo of LCO and HSD totalling 32,400-35,460 tonnes
for June 17-18 loading from Paradip.
    - India's Nayara Energy sold 65,000-70,000 tonnes of 10-ppm gasoil for June 26-30 loading
from Vadinar, a broker source said.
    
    SINGAPORE CASH DEALS
    - No gasoil trades, no jet fuel deals
    
    OTHER NEWS
    - Oil rose on Wednesday, supported by an OPEC+ decision to stick to its plan to restore
supply to the market gradually and by the slow pace of nuclear talks between Iran and the United
States.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                  74     0.09       0.12       73.91  GO-SIN
 GO 0.5 Diff                     -2.65    -0.04       1.53       -2.61  GO-SIN-DIF
 Spot Gas Oil 0.25%              74.21     0.09       0.12       74.12  GO25-SIN
 GO 0.25 Diff                    -2.44    -0.04       1.67        -2.4  GO25-SIN-DIF
 Spot Gas Oil 0.05%              74.32     0.09       0.12       74.23  GO005-SIN
 GO 0.05 Diff                    -2.33    -0.04       1.75       -2.29  GO005-SIN-DIF
 Spot Gas Oil 0.001%             76.53        0       0.00       76.53  GO10-SIN
 GO 0.001 Diff                   -0.12    -0.13   -1300.00        0.01  GO10-SIN-DIF
 Spot Jet/Kero                   74.11     0.14       0.19       73.97  JET-SIN
 Jet/Kero Diff                    -0.2    -0.01       5.26       -0.19  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 Subhranshu Sahu)
  
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