Asia Distillates-Jet fuel cash discounts widen further

    SINGAPORE, June 24 (Reuters) - Asia's cash discounts for jet fuel widened further on
Thursday, weighed down by sluggish demand and expectations for increasing supplies.
    The jet cash differentials JET-SIN-DIF weakened for a fourth straight session to a
discount of 42 cents per barrel, the widest since June 8. 
    Although the aviation market is getting some support from summer travel demand in western
countries, the ongoing border restrictions in Asia and limited scopes for international flights
globally will keep hurting jet fuel margins well into 2022, market watchers said.
    Meanwhile, rising refinery run rates in the region would lead to additional supplies,
prompting the need for steady arbitrage shipments to the West, trade sources said.
    Refining profit margins, or cracks, for jet fuel dropped to $5.59 per barrel
over Dubai crude during Asian trading hours, compared with $5.77 a barrel on Wednesday.
    The jet fuel cracks are currently about 45% lower than their five-year seasonal average for
this time of the year, Refinitiv Eikon data showed.
    - Singapore's middle distillate inventories rose 1% to a five-week high of 13.1 million
barrels in the week to June 23, according to Enterprise Singapore data.
    - Weekly Singapore middle distillate inventories have averaged 13.7 million barrels this
year, compared with an average of 13.9 million barrels in 2020, Reuters calculations showed.
This week's stocks were 6.1% lower than a year earlier.
    - U.S. distillate stockpiles rose by 1.8 million barrels in the week to June 18 versus
expectations for a 1.1 million-barrel rise, the Energy Information Administration said on
    - No gasoil deals, no jet fuel trades
    - Temasek-backed Singapore conglomerate Keppel Corp and Sembcorp Marine
are set to begin talks to explore combining their ailing offshore and marine (O&M) businesses,
two sources familiar with the matter said on Thursday.
    - Oil prices gained for a second day on Thursday after drawdowns in U.S. inventories and
accelerating German economic activity bolstered confidence in the fuel demand recovery.
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                78.46     0.04       0.05       78.42  GO-SIN
 GO 0.5 Diff                      -2.31     0.01      -0.43       -2.32  GO-SIN-DIF
 Spot Gas Oil 0.25%               78.56     0.04       0.05       78.52  GO25-SIN
 GO 0.25 Diff                     -2.21     0.01      -0.45       -2.22  GO25-SIN-DIF
 Spot Gas Oil 0.05%               78.77     0.04       0.05       78.73  GO005-SIN
 GO 0.05 Diff                        -2     0.01      -0.50       -2.01  GO005-SIN-DIF
 Spot Gas Oil 0.001%              80.71     0.03       0.04       80.68  GO10-SIN
 GO 0.001 Diff                    -0.06        0       0.00       -0.06  GO10-SIN-DIF
 Spot Jet/Kero                    77.98    -0.01      -0.01       77.99  JET-SIN
 Jet/Kero Diff                    -0.42    -0.07      20.00       -0.35  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 Devika Syamnath)