Asian refining margins for jet fuel slumped to their lowest in over a month on Tuesday, as renewed travel bans to contain a new COVID-19 variant cast serious doubts over aviation demand recovery in the near term.
Refining margins, or cracks, for jet fuel dropped to $4.05 per barrel over Dubai crude on Tuesday, the lowest since Dec. 2. They were at $4.80 a barrel on Monday.
The jet fuel cracks in Singapore, which stooped to record lows in 2020 and averaged $3.02 per barrel over Dubai crude last year, remains at their weakest seasonal level on record for this time of the year, Refinitiv Eikon data showed.
Vietnam has proposed suspending or limiting incoming flights from at least 34 countries and territories that have detected cases of the new COVID-19 variant first found in Britain, while Kuwait was suspending direct commercial flights to and from Britain as of Wednesday.
Cash differentials for jet fuel JET-SIN-DIF were at a discount of 10 cents per barrel to Singapore quotes on Tuesday, compared with a 12-cent discount a day earlier.
U.S. AIRLINES BACK ‘GLOBAL’ COVID-19 TESTING REQUIREMENTS
– A group representing major U.S. airlines on Monday backed a proposal by public health officials to implement a global testing program requiring negative tests before most international air passengers return to the United States, according to a letter seen by Reuters.
– Airlines for America, which represents American Airlines, United Airlines, Delta Air Lines and other major carriers, also urged the Trump administration in a letter to Vice President Mike Pence “to move ahead with recommendations to rescind current entry restrictions on travelers from Europe, the United Kingdom and Brazil as soon as possible … concurrently with the testing program.”
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel trades
OTHER NEWS
– Oil prices inched up on Tuesday as tension around Iran’s seizure of a South Korean vessel simmered and after it emerged that the OPEC+ group is studying a possible production cut in February, according to a document.
ASSESSMENTS
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 54.35 -2.64 -4.63 56.99 GO-SIN
GO 0.5 Diff -1.53 0.01 -0.65 -1.54 GO-SIN-DIF
Spot Gas Oil 0.25% 54.45 -2.64 -4.62 57.09 GO25-SIN
GO 0.25 Diff -1.43 0.01 -0.69 -1.44 GO25-SIN-DIF
Spot Gas Oil 0.05% 54.55 -2.64 -4.62 57.19 GO005-SIN
GO 0.05 Diff -1.33 0.01 -0.75 -1.34 GO005-SIN-DIF
Spot Gas Oil 0.001% 55.66 -2.68 -4.59 58.34 GO10-SIN
GO 0.001 Diff -0.22 -0.03 15.79 -0.19 GO10-SIN-DIF
Spot Jet/Kero 54.11 -2.64 -4.65 56.75 JET-SIN
Jet/Kero Diff -0.1 0.02 -16.67 -0.12 JET-SIN-DIF
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
Source: Reuters (Reporting by Koustav Samanta; Editing by Shailesh Kuber)