SINGAPORE, Nov 12 (Reuters) - Asia's cash premiums for jet fuel inched higher on Friday,
hitting their highest levels in 22 months, buoyed by active buying interests for physical
cargoes amid expectations for aviation demand recovery in coming months.
Cash premiums for jet fuel JET-SIN-DIF rose by a cent to 36 cents per barrel to Singapore
quotes, a level last seen in January 2020. The jet cash differentials have surged about 80% this
Although wider vaccinations and eased travel curbs have boosted sentiment in the aviation
fuel market, traders said it would still need an uptick in international travel and strong
heating demand for kerosene in coming months to sustain the recent rally.
Refining margins, also known as cracks, for jet fuel slipped to $11.19 per
barrel over Dubai crude during Asian trading hours, compared with $12.13 per barrel a day
The jet fuel cracks, which also determine the profitability of kerosene, have shed about 12%
this week, following a 9% rise last week, Refinitiv data showed.
"We remain cautiously optimistic about the Asian (jet fuel) spot market as forecasts suggest
it will be a relatively warm winter in Hokkaido – the region where kerosene is most widely used
for heating in the winter in Asia," Zameer Yusof, senior analyst at Refinitiv Oil Research said
in a weekly note.
"Renewed lockdowns in China amid a resurgence of the virus have had a double impact on the
fundamentals, reducing demand and increasing the country's exports," he added.
- Singapore Airlines Ltd has 79% of its fleet and the vast majority of pilots and
cabin crew active so that it can quickly capitalise on any increase in demand, the airline's
chief executive said on Friday.
- "We have 92% of pilots and 86% of cabin crew now back with us," he told analysts and
media. "At the level we are operating now, which is 37% of pre-COVID capacity, going up to 43%
in December, we are quite comfortable with this return rate."
- The airline said on Thursday market conditions were improving after it reported a narrower
second-quarter loss due to cost-cutting efforts, record cargo revenue and an improvement in
passenger numbers from a low base.
SINGAPORE CASH DEALS
- No gasoil trades, no jet fuel deals
- Oil prices fell on Friday, wiping out gains from the previous session as the dollar
continued to firm on expectations that the U.S. central bank will bring forward an increase to
interest rates in an effort to tame inflation.
- Japanese refiners reported strong earnings for April-September and lifted their annual
forecasts as surging oil prices brought hefty valuation gains on inventories and boosted
earnings from their upstream oil assets.
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 92.56 -1.27 -1.35 93.83 GO-SIN
GO 0.5 Diff -0.07 -0.12 -240.00 0.05 GO-SIN-DIF
Spot Gas Oil 0.25% 92.71 -1.27 -1.35 93.98 GO25-SIN
GO 0.25 Diff 0.08 -0.12 -60.00 0.2 GO25-SIN-DIF
Spot Gas Oil 0.05% 92.86 -1.27 -1.35 94.13 GO005-SIN
GO 0.05 Diff 0.23 -0.12 -34.29 0.35 GO005-SIN-DIF
Spot Gas Oil 0.001% 93.36 -1.28 -1.35 94.64 GO10-SIN
GO 0.001 Diff 0.73 -0.13 -15.12 0.86 GO10-SIN-DIF
Spot Jet/Kero 90.83 -1.21 -1.31 92.04 JET-SIN
Jet/Kero Diff 0.36 0.01 2.86 0.35 JET-SIN-DIF
For a list of derivatives prices, including margins, please
double click the RICs below.
Jet Cracks M1
Jet Cracks M2
Crack LGO-Brent M1
Crack LGO-Brent M2
(Reporting by Koustav Samanta; Editing by Shailesh Kuber)
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