Asia Distillates Kerosene Cash Bounties Post Second Straight Weekly Drop

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SINGAPORE, Feb 18 (Reuters) – Asia’s cash premiums for jet fuel fell on Friday, posting a second straight weekly decline, weighed down by lackluster buying interest in physical cargoes.

Cash premiums on jet fuel fell 1 cent to $1.23 a barrel against Singapore quotes. The differentials have lost 18.5% this week.

The aviation fuel market is expected to strengthen in the coming months as more flights return to the skies, but any major upside would likely be limited, trade sources said.

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“Momentum towards traffic normalization is accelerating…While recent progress has been impressive, the world remains far from 2019 connectivity levels,” Air Transport Association chief executive Willie Walsh said on Thursday. internationally (IATA).

“Thirteen of the top 50 travel markets still do not offer easy access to all vaccinated travelers. This includes major economies like China, Japan, Russia, Indonesia and Italy.”

There was an 11 percentage point increase in international tickets sold in recent weeks, as a proportion of 2019 sales, according to IATA data.

Refining margins, or cracks, for jet fuel slipped to $13.49 a barrel against Dubai crude during Asian trading hours, the lowest since Jan. 26. They were at 14.33 dollars a barrel on Thursday.

Jet cracks, which also determine the profitability of closely related jet fuel, have fallen around 14% in the past two weeks, partly affected by weaker jet fuel demand as the winter peak comes to an end, said traders.

CHINA ISSUES MEASURES TO BOOST COVID RECOVERY

— China’s state planner issued rules on Friday to promote a faster recovery from the COVID-19 pandemic in the service sector, including providing tax incentives to the restaurant, retail, tourism and aviation.

– China will stop collecting value-added tax from airlines for 2022 and will continue to subsidize key routes and smaller airports, according to the National Development and Reform Commission.

ARA INVENTORIES

– Diesel stocks held independently at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage center fell 3.4% to 1.5 million tonnes in the week ending February 17, their lowest level since April 2014, according to Dutch consultancy Insights Global.

– ARA jet fuel inventories rose 1.1% this week to 839,000 tonnes.

CASH OFFERS IN SINGAPORE

– A diesel contract, no exchange of jet fuel

OTHER NEWS

– Oil prices extended losses on Friday and were heading for a weekly fall as the prospect of Iran’s additional supply returning to the market trumped fears of a possible supply disruption stemming from a Russian invasion of Ukraine.

– European liquefied natural gas (LNG) terminals have limited available capacity to absorb additional supply from the United States or other large producers in the event of disruption from Russian gas if it invades Ukraine. Read more

EVALUATIONS

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Reporting by Koustav Samanta; Edited by Ramakrishnan M.

Our standards: The Thomson Reuters Trust Principles.

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