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Asia Distillates-Jet fuel cracks post biggest weekly gain in 2 months

    SINGAPORE, Feb 5 (Reuters) - Asian refining margins for jet fuel rose on Friday, posting
their biggest weekly gain in two months, while cash discounts for the aviation fuel narrowed
amid limited supplies.
    The regional jet fuel market is expected to pick up further strength gradually as countries
ease travel restrictions in coming months, although the usual seasonal boost during the Lunar
New Year holidays would mostly remain dampened this year, trade sources said.
    Refining margins, or cracks, for jet fuel rose to $4.43 per barrel over Dubai
crude during Asian trading hours, the strongest since Jan. 18.
    The cracks have gained 25.5% this week, the steepest weekly rise since Dec. 4.
    "Our forecast is for traffic to return to half of 2019 levels in 2021," Alexandre de Juniac,
director general and chief executive of the International Air Transport Association (IATA) said
in a statement this week.
    "But the proliferation of restrictions on travel that we have seen since the beginning of
the year could make even that modest outlook very challenging," he added.
    Global air passenger demand in 2020 was 65.9% lower than 2019 levels, while global air cargo
demand last year was about 11% below 2019, IATA data showed on Wednesday. 
    Some market watchers believe aviation passenger demand might see a surge soon after the
majority of travel restrictions are lifted as a lot of people are bored of not travelling.
    Cash differentials for jet fuel JET-SIN-DIF were at a discount of 15 cents per barrel to
Singapore quotes on Friday, compared with a 21-cent discount a day earlier.
    
    ARA STOCKS
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA rose 3.4% to 2.7 million tonnes in the week to Feb. 2, data from Dutch
consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories STK-JET-ARA climbed 3.8% to 937,000 tonnes.
    
    TENDERS
    - Sri Lanka's Ceylon Petroleum Corp (Ceypetco) is seeking gasoil for delivery into Colombo
over the eight months between May and December this year.    
 ISSUER        GRADE:              VOLUME:       DATE:               CLOSE (VALID)
 *Sri          BUY: 500ppm gasoil  280KB x 4     May 1-Dec 31, 2021  March 9 (90 Days)
 Lanka/Ceypet                                                        
 co                                                                  
 *Sri          BUY: 500ppm gasoil  227.5KB x 5   May 1-Dec 31, 2021  March 9 (90 Days)
 Lanka/Ceypet                                                        
 co                                                                  
               BUY: 10ppm gasoil   52.5KB x 5    May 1-Dec 31, 2021  March 9 (90 Days)
 *Sri          BUY: 500ppm gasoil  280KB x 4     May 1-Dec 31, 2021  March 9 (90 Days)
 Lanka/Ceypet                                                        
 co                                                                  
    
    SINGAPORE CASH DEALS
    - One gasoil deal, no jet fuel trades
    
    OTHER NEWS
    - Oil hit its highest level in a year on Friday, closing in on $60 a barrel on economic
revival hopes and supply curbs by producer group OPEC and its allies.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                       
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               63.71     0.82       1.30       62.89  GO-SIN
 GO 0.5 Diff                      -1.6    -0.05       3.23       -1.55  GO-SIN-DIF
 Spot Gas Oil 0.25%              63.81     0.82       1.30       62.99  GO25-SIN
 GO 0.25 Diff                     -1.5    -0.05       3.45       -1.45  GO25-SIN-DIF
 Spot Gas Oil 0.05%              64.08     0.82       1.30       63.26  GO005-SIN
 GO 0.05 Diff                    -1.23    -0.05       4.24       -1.18  GO005-SIN-DIF
 Spot Gas Oil 0.001%             65.27     0.85       1.32       64.42  GO10-SIN
 GO 0.001 Diff                   -0.04    -0.02     100.00       -0.02  GO10-SIN-DIF
 Spot Jet/Kero                   62.77     0.96       1.55       61.81  JET-SIN
 Jet/Kero Diff                   -0.15     0.06     -28.57       -0.21  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 Uttaresh.V)
  
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