Asia Distillates-Jet fuel cracks slip as aviation demand struggles

    SINGAPORE, Jan 13 (Reuters) - Asian jet fuel refining margins dipped on Wednesday, hurt by
firmer prices of its raw material crude and sluggish aviation demand, as several countries
continue to keep a majority of their international flights still grounded.
    Refining profit margins, also known as cracks, for jet fuel eased to $4.07 per
barrel over Dubai crude during Asian trading hours on Wednesday, down six cents from a day
    Air passenger traffic rose slightly during the year-end holidays, but reimposed travel
restrictions to contain a new variant of the coronavirus is hurting further recovery, market
watchers said.
    "While there was some increase in capacity over the Christmas and New Year period,
essentially we are now back where we were at the end of November, with global seats at 55.3
million, capacity 48% below a year ago, and scheduled aviation back where it was six weeks ago,"
aviation data firm OAG said in a statement.
    Cash differentials for jet fuel JET-SIN-DIF remained unchanged at a discount of 28 cents
per barrel to Singapore quotes on Wednesday, while Refinitiv Eikon data showed the prompt-month
spread for the aviation fuel widened its contango by a cent to trade at minus 28 cents per
    - Middle-distillate inventories in the Fujairah Oil Industry Zone slipped 1.6% to 4.4
million barrels in the week ended Jan. 11, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah averaged 4.2 million barrels in 2020, compared with the
weekly average of 2.4 million barrels in 2019, Reuters calculations showed.
    - U.S. distillate stockpiles rose by 4.4 million barrels in the week to Jan. 8, compared
with expectations for a build of 2.7 million barrels, data from industry group the American
Petroleum Institute (API) showed on Tuesday.
    - One gasoil deal, no jet fuel trades

    - Coronavirus-induced lockdowns caused annual traffic congestion to fall in most countries
for the first time in at least 10 years, disrupting long-held traffic patterns like the dreaded
morning commute to work, a report released on Tuesday showed.
    - Oil prices were higher on Wednesday, with U.S. crude gaining for the seventh straight day,
after industry data showed a bigger than expected drop in inventories and investors shrugged off
rising new deaths and infections in the pandemic.
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               60.18     0.86       1.45       59.32  GO-SIN
 GO 0.5 Diff                     -1.51     0.01      -0.66       -1.52  GO-SIN-DIF
 Spot Gas Oil 0.25%              60.28     0.86       1.45       59.42  GO25-SIN
 GO 0.25 Diff                    -1.41     0.01      -0.70       -1.42  GO25-SIN-DIF
 Spot Gas Oil 0.05%              60.38     0.86       1.44       59.52  GO005-SIN
 GO 0.05 Diff                    -1.31     0.01      -0.76       -1.32  GO005-SIN-DIF
 Spot Gas Oil 0.001%             61.49     0.86       1.42       60.63  GO10-SIN
 GO 0.001 Diff                    -0.2     0.01      -4.76       -0.21  GO10-SIN-DIF
 Spot Jet/Kero                   59.76     0.75       1.27       59.01  JET-SIN
 Jet/Kero Diff                   -0.28        0       0.00       -0.28  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 Uttaresh.V)