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Asia Distillates-Jet cash discounts widen as virus continues to rattle aviation

SINGAPORE, Aug 6 (Reuters) – Asia’s cash discounts for jet fuel widened on Thursday as airlines around the globe continue to struggle through their worst downturn with reimposed lockdowns and travel curbs in several countries to stem a resurgence in coronavirus cases. Cash differentials for jet fuel <JET-SIN-DIF> were at a discount of 54 cents a barrel to Singapore quotes on Thursday, compared with a discount of 45 cents per barrel a day earlier. Air passenger traffic, which showed signs of an uptick on domestic routes and as some countries relaxed coronavirus-related restrictions, has again pulled back with the renewed wave of infections. The commercial aviation sector remains under pressure as travellers shy away from flying in order to avoid infections, and also inconveniences such as quarantine periods, regulatory authority approvals for travelling, and medical tests, trade sources said. Abu Dhabi’s Etihad Airways reported on Thursday a $758 million loss in the first half of the year as passenger traffic fell by nearly 60% due to the health crisis, while Virgin Australia Holdings said it plans to cut a third of its workforce as part of an overhaul. Refining profit margins or cracks for jet fuel were $1.09 a barrel over Dubai crude during Asian trading hours on Thursday, down 18 cents from Wednesday. INVENTORIES – Singapore onshore middle distillate stocks climbed 6.8% to 14.6 million barrels in the week ended Aug. 5, Enterprise Singapore data showed. – The weekly Singapore middle distillate inventories have averaged at 12.9 million barrels so far in 2020, Reuters calculations showed. This week’s stocks were up 47.6% year-on-year. – U.S. distillate stockpiles rose by 1.6 million barrels versus expectations for a 279,000-barrel rise, U.S. Energy Information Administration data showed on Wednesday. At just under 180 million barrels, the distillate inventories were the highest since December 1982 for the third week in a row, the EIA said. TENDERS – India’s Mangalore Refinery and Petrochemicals Ltd (MRPL) has offered 65,000 tonnes of 10ppm gasoil for Aug. 24-26 loading from the port of New Mangalore. – The tender closes on Aug. 7 and has a same-day validity. SINGAPORE CASH DEALS – No gasoil deals, no jet fuel trades ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 48.53 0.07 0.14 48.46 <GO-SIN> GO 0.5 Diff -1.48 0.02 -1.33 -1.50 <GO-SIN-DIF> Spot Gas Oil 0.25% 49.08 0.07 0.14 49.01 <GO25-SIN> GO 0.25 Diff -0.93 0.02 -2.11 -0.95 <GO25-SIN-DIF> Spot Gas Oil 0.05% 49.12 0.07 0.14 49.05 <GO005-SIN> GO 0.05 Diff -0.89 0.02 -2.20 -0.91 <GO005-SIN-DIF> Spot Gas Oil 0.001% 50.12 0.07 0.14 50.05 <GO10-SIN> GO 0.001 Diff 0.11 0.02 22.22 0.09 <GO10-SIN-DIF> Spot Jet/Kero 44.11 -0.24 -0.54 44.35 <JET-SIN> Jet/Kero Diff -0.54 -0.09 20.00 -0.45 <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 Shinjini Ganguli)

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