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Asia Distillates-Jet fuel cracks drop as airlines clip scheduled capacity

    SINGAPORE, Sept 14 (Reuters) - Asian refining margins for jet fuel slipped on Tuesday,
weighed down by firmer prices of raw material crude and lacklustre aviation demand, while global
airlines trimmed scheduled capacity for the remainder of this year.
    Refining profit margins, or cracks, for jet fuel dropped to $6.95 per barrel
over Dubai crude during Asian trading hours, 9 cents lower from Monday, drifting away from a
multi-month high of $7.26 touched in the first week of September.
    Global scheduled seat capacity inched up 0.7% to about 79 million in the week to Monday, but
airlines this week have removed 17 million seats for the rest of 2021, according to aviation
data firm OAG.
    Scheduled capacity in India fell 1.8% this week, while flight capacity in China and Japan
gained 3% and 5.1%, respectively, OAG data showed.
    A steady recovery in China's domestic aviation demand has been driving capacity growth,
market watchers said, but surging local COVID-19 infections in China's southeastern province of
Fujian this week have prompted officials to roll out safety measures including travel
restrictions.
    Cash differentials for jet fuel JET-SIN-DIF, which have stayed in a negative territory for
more than two weeks now, were at a discount of 6 cents per barrel to Singapore quotes on
Tuesday.
    
    UK TRAVEL SECTOR WOES
    - Britain's travel sector is bracing for a new wave of job cuts, with an industry trade body
saying that more than two-thirds of its members were planning to make redundancies shortly due
to the government's restrictive holiday rules.
    - Travel industry body ABTA, which represents 4,300 travel brands, said that new bookings
were 83% lower in summer 2021 compared to their pre-pandemic levels, and as a result most of its
members were planning more job cuts at the end of this month when a furlough scheme ends.
    
    SINGAPORE CASH DEALS
    - One jet fuel deal, no 10 ppm gasoil trades
    
    OTHER NEWS
    - Oil prices hit a six-week high on Tuesday on concerns that another storm could affect
output in Texas this week even as the U.S. industry struggles to return to normal production
levels after Hurricane Ida wreaked havoc on the Gulf Coast.
    - OPEC on Monday trimmed its world oil demand forecast for the last quarter of 2021 due to
the Delta coronavirus variant, saying a further recovery would be delayed until next year when
consumption will exceed pre-pandemic rates.
    
    ASSESSMENTS
 MID-DISTILLATES                                                                        
 CASH ($/T)             ASIA CLOSE       Change   % Change   Prev Close  RIC
 Spot Gas Oil 0.5%                   78     0.53       0.68       77.47  GO-SIN
 GO 0.5 Diff                      -3.35    -0.01       0.30       -3.34  GO-SIN-DIF
 Spot Gas Oil 0.25%                78.1     0.53       0.68       77.57  GO25-SIN
 GO 0.25 Diff                     -3.25    -0.01       0.31       -3.24  GO25-SIN-DIF
 Spot Gas Oil 0.05%                78.3     0.53       0.68       77.77  GO005-SIN
 GO 0.05 Diff                     -3.05    -0.01       0.33       -3.04  GO005-SIN-DIF
 Spot Gas Oil 0.001%              81.73     0.54       0.67       81.19  GO10-SIN
 GO 0.001 Diff                     0.38    -0.01      -2.56        0.39  GO10-SIN-DIF
 Spot Jet/Kero                    78.51     0.57       0.73       77.94  JET-SIN
 Jet/Kero Diff                    -0.06     0.03     -33.33       -0.09  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 Vinay Dwivedi)
  
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