Asia distillates-jet fuel cash differentials flip into premiums
SINGAPORE, Dec 7 (Reuters) - Asia's cash differential for jet fuel flipped to a narrow
premium on Monday for the first time in more than nine months, while prompt-month spread for the aviation fuel remained in a contango structure.
Cash differentials for jet fuel were at a premium of 3 cents a barrel to
Singapore quotes on Monday, a level not seen since late February. They were at a discount of 15 cents per barrel on Friday. The jet fuel market is getting support from a gradual recovery in aviation demand, while spot availability of the fuel is limited to an extent, a trader said. Also, the market contango has "narrowed a lot," he added.
The December/January time spread for jet fuel in Singapore traded at a
discount of 28 cents per barrel on Monday, Refinitiv Eikon data showed. The prompt-month spread narrowed about 53% over the last two months. The overall market for the aviation fuel, however, is expected to remain under pressure at least until the second quarter of next year as international travel restrictions persist amid
renewed surge of COVID-19 cases in several markets, market watchers said.
Refining margins, also known as cracks, for jet fuel dropped to $4.37 per
barrel over Dubai crude during Asian trading hours, down from $4.63 per barrel on Friday.
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