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Asia Distillates-Jet fuel cash discounts widen on muted trading

    SINGAPORE, April 14 (Reuters) - Asia's cash differentials for jet fuel dropped for a second
straight session on Wednesday, hurt by muted buying interest for physical cargoes as new waves
of COVID-19 infections forced global airlines to reduce capacity for coming weeks.
    Cash differentials for jet fuel JET-SIN-DIF, which have persistently stayed in negative
territory this year, were at a discount of 62 cents a barrel to Singapore quotes, compared with
a 61-cent discount a day earlier.
    "For jet fuel, there's no light at the end of the tunnel yet ... And the tunnel is really
very long," a Singapore-based trader said, adding that it would take travellers quite some time
to regain the confidence to start flying again.
    Hopefully, by the year-end with more vaccinations done, the overall aviation demand could
see some substantial recovery, but "it would likely take until 2024 to return to pre-COVID
levels," the trader added.
    Refining margins, also known as cracks, for jet fuel rose 56 cents to $4.94 per
barrel over Dubai crude during Asian trade on Wednesday.
    Cracks for the aviation fuel in Singapore have averaged $4.05 per barrel over Dubai crude so
far this year, compared with $3.02 per barrel in 2020, and $14.96 a barrel in pre-pandemic 2019,
Refinitiv Eikon data showed.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 7.9% to 3.1
million barrels in the week ended April 12, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 4 million barrels so far this year, compared
with 4.2 million barrels in 2020, Reuters calculations showed.
    - U.S. distillate fuel inventories, which include diesel and heating oil, fell by 3 million
barrels in the week to April 9, according to two market sources, citing American Petroleum
Institute (API) figures.
    
    SINGAPORE CASH DEALS
    - No gasoil deals, no jet fuel trades
        
    OTHER NEWS
    - Australia's Qantas Airways Ltd has seen domestic leisure travel rebound to
pre-pandemic levels, but demand in the corporate travel market is lagging about three months
behind, its chief executive said.
    - Crude oil prices jumped on revised oil demand forecasts on Wednesday despite concerns over
rising coronavirus cases and vaccine rollouts.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               66.99     1.17       1.78       65.82  GO-SIN
 GO 0.5 Diff                     -1.62     0.01      -0.61       -1.63  GO-SIN-DIF
 Spot Gas Oil 0.25%              67.16     1.17       1.77       65.99  GO25-SIN
 GO 0.25 Diff                    -1.45     0.01      -0.68       -1.46  GO25-SIN-DIF
 Spot Gas Oil 0.05%              67.41     1.17       1.77       66.24  GO005-SIN
 GO 0.05 Diff                     -1.2     0.01      -0.83       -1.21  GO005-SIN-DIF
 Spot Gas Oil 0.001%             68.47     1.14       1.69       67.33  GO10-SIN
 GO 0.001 Diff                   -0.15    -0.03      25.00       -0.12  GO10-SIN-DIF
 Spot Jet/Kero                   66.06     1.49       2.31       64.57  JET-SIN
 Jet/Kero Diff                   -0.62    -0.01       1.64       -0.61  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 Aditya Soni)
  
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