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Asia Distillates-Jet fuel cracks rise, cash discounts narrow

    SINGAPORE, July 21 (Reuters) - Asian refining margins for jet fuel edged higher on
Wednesday, while aviation data showed global airlines have continued to trim July flight
capacity in the most recent week.
    Refining margins, also known as cracks, for jet fuel in Singapore were at $5.98
per barrel over Dubai crude during Asian trading hours, up 10 cents from Monday, but 6.6% lower
from a high of $6.40 touched on July 5.
    Airlines across the globe have removed 1.9 million seats this week from their July capacity,
which is now expected to be at 358.5 million seats, up 19% from June, but 32% lower compared
with July in pre-pandemic 2019, according to aviation data firm OAG.
    "Capacity between July and the end of the year has been adjusted downwards by 0.3% with all
months having slightly lower capacity except October and December when the number of seats has
been moved up slightly," OAG said in a statement.
    Australia's flight capacity in the week to Monday was 13% lower compared with last week,
while seat capacity in South Korea and Japan this week rose 1.4% and 18.7% respectively, OAG
data showed.
    Cash differentials for jet fuel JET-SIN-DIF were at a discount of 29 cents per barrel to
Singapore quotes on Wednesday, compared with a discount of 41 cents per barrel in the last
trading session on Monday.
    
    INVENTORIES
    - Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 9.6% to 3.4
million barrels in the week ended July 19, data via S&P Global Platts showed.
    - The weekly stocks in Fujairah have averaged 3.8 million barrels 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 1.2
million barrels in the week to July 16, according to two market sources, citing American
Petroleum Institute figures.
    
    SINGAPORE CASH DEALS
    - No jet fuel deals, no gasoil trades
    
    OTHER NEWS
    - Oil prices rose on Wednesday, extending gains from the previous session as improved risk
appetite provided support despite data showing an unexpected rise in U.S. oil inventories last
week and a weaker demand outlook due to rising COVID-19 infections.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                         
 CASH ($/T)              ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                 73.48     -2.9      -3.80       76.38  GO-SIN
 GO 0.5 Diff                       -2.28     0.01      -0.44       -2.29  GO-SIN-DIF
 Spot Gas Oil 0.25%                73.58     -2.9      -3.79       76.48  GO25-SIN
 GO 0.25 Diff                      -2.18     0.01      -0.46       -2.19  GO25-SIN-DIF
 Spot Gas Oil 0.05%                73.79     -2.9      -3.78       76.69  GO005-SIN
 GO 0.05 Diff                      -1.97     0.01      -0.51       -1.98  GO005-SIN-DIF
 Spot Gas Oil 0.001%               75.74    -2.88      -3.66       78.62  GO10-SIN
 GO 0.001 Diff                     -0.02     0.03     -60.00       -0.05  GO10-SIN-DIF
 Spot Jet/Kero                     73.19    -2.69      -3.55       75.88  JET-SIN
 Jet/Kero Diff                     -0.29     0.12     -29.27       -0.41  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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