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Asia Distillates-Jet cracks drop as aviation sector continues to struggle

    SINGAPORE, April 16 (Reuters) - Asian refining margins for jet fuel dropped for a second
straight session on Friday, weighed by worries that renewed coronavirus lockdowns in several
markets would dampen aviation demand recovery.
    Refining margins, or cracks, for jet fuel dropped to $4.59 per barrel over
Dubai crude during Asian trading hours, 15 cents lower from Thursday.
    Jet cracks have gained 10% this week, but still remain 63% lower than the ten-year seasonal
average for this time of the year, Refinitiv Eikon data showed.
    While pockets of demand have emerged from some domestic routes, a majority of international
flights remain grounded due to prolonged border restrictions amid fresh virus waves in many
parts of Asia.
    Business travel is still being avoided as much as possible across sectors, while a lot of
families are not making plans to fly as vaccinations are based on different age groups and
nobody wants to risk the younger ones, who are not vaccinated, a Singapore-based trader said.
    Jet fuel supplies in the region are limited as refiners have kept a cap on production due to
weaker refining margins, but persistent weakness in demand continues to put a damper on
sentiment, market watchers said.
    Cash discounts for jet fuel JET-SIN-DIF were at 36 cents a barrel to Singapore quotes on
Friday, compared with a discount of 62 cents per barrel a day earlier.
    
    CHINA REFINERY OUTPUT CLIMBS
    - China's daily crude oil throughput surged 19.7% in March from a year earlier, as refiners
ramped up operations to meet robust fuel demand and to build up inventory before shutting down
for overhaul.
    - China processed 59.79 million tonnes of crude oil last month, data issued by the National
Bureau of Statistics (NBS) showed on Friday. That is equivalent to 14.08 million barrels per day
(bpd), easing off 14.13 million bpd averaged in the first two months.
    
    ARA INVENTORIES
    - Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and
storage hub STK-GO-ARA dropped 2.6% to 2.3 million tonnes in the week to April 15, data from
Dutch consultancy Insights Global showed.
    - The data showed ARA jet fuel inventories STK-JET-ARA fell 4.6% to 862,000 tonnes.
    
    SINGAPORE CASH DEALS
    - Three gasoil deals, no jet fuel trades
        
    OTHER NEWS
    - Oil rose above $67 a barrel on Friday, gaining for a fifth session, as a stronger demand
outlook and signs of economic recovery in China and the United States offset rising COVID-19
infections in some other major economies.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)            ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%               69.43     0.81       1.18       68.62  GO-SIN
 GO 0.5 Diff                      -1.7    -0.09       5.59       -1.61  GO-SIN-DIF
 Spot Gas Oil 0.25%               69.6     0.81       1.18       68.79  GO25-SIN
 GO 0.25 Diff                    -1.53    -0.09       6.25       -1.44  GO25-SIN-DIF
 Spot Gas Oil 0.05%              69.84      0.8       1.16       69.04  GO005-SIN
 GO 0.05 Diff                    -1.29     -0.1       8.40       -1.19  GO005-SIN-DIF
 Spot Gas Oil 0.001%             70.88     0.83       1.18       70.05  GO10-SIN
 GO 0.001 Diff                   -0.25    -0.07      38.89       -0.18  GO10-SIN-DIF
 Spot Jet/Kero                   68.77     1.07       1.58        67.7  JET-SIN
 Jet/Kero Diff                   -0.36     0.26     -41.94       -0.62  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 Amy Caren Daniel)
  
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