News: AIY Asia Distillates-Jet fuel refining profits surge to 8-month high

SINGAPORE, Dec 1 (Reuters) - Asian refining margins for jet fuel climbed to their highest in eight months on Tuesday, buoyed by a slight uptick in aviation demand and expectations for firmer winter heating demand for kerosene.

Refining margins, or cracks, for jet fuel JETSGCKMc1 jumped to $4.28 per barrel over Dubai crude during Asian trading hours, the highest level since March 30. They were at $3.53 per barrel a day earlier.

The jet fuel cracks have nearly doubled over the last month as demand for kerosene picked up ahead of peak winter in Japan and South Korea. Jet fuel and kerosene belong to the same grade of oil products, with jet margins determining the profitability of both.

Although the regional jet fuel market has found some support in recent weeks from a sluggish recovery in domestic aviation demand, market watchers believe any substantial upside would remain capped as long as international flights do not take off in serious numbers.

Scheduled flights operating globally were 46% lower in November year-on-year, an improvement from 46.4% fewer flights year-on-year in October, according to aviation data firm OAG.

Scheduled flights in India were down 39.4% year-on-year in the week to Monday, compared with a 43.9% drop for the whole of November. Flights in Japan in the week to Monday were 33.4% lower from the corresponding period last year, as against a 36% drop for the whole of November, OAG data showed.

Cash differentials for jet fuel JET-SIN-DIF were at a discount of 27 cents a barrel to Singapore quotes on Tuesday, compared with a discount of 26 cents per barrel a day earlier.

SINGAPORE CASH DEALS - No gasoil deals, no jet fuel trades

OTHER NEWS - An air travel bubble between Singapore and Hong Kong has been delayed until next year, the Civil Aviation Authority of Singapore said on Tuesday, as coronavirus cases spike in Hong Kong.

ASSESSMENTS MID-DISTILLATES

 CASH ($/T)			ASIA CLOSE	   Change   % Change   Prev Close  RIC 
 Spot Gas Oil 0.5%			   51.44	 0.55	   1.08	   50.89   GO-SIN  
 GO 0.5 Diff					 -1.31	-0.02	   1.55	   -1.29   GO-SIN-DIF  
 Spot Gas Oil 0.25%			  51.74	 0.55	   1.07	   51.19   GO25-SIN  
 GO 0.25 Diff					-1.01	-0.02	   2.02	   -0.99   GO25-SIN-DIF  
 Spot Gas Oil 0.05%			  51.89	 0.55	   1.07	   51.34   GO005-SIN  
 GO 0.05 Diff					-0.86	-0.02	   2.38	   -0.84   GO005-SIN-DIF  
 Spot Gas Oil 0.001%			 52.54	 0.50	   0.96	   52.04   GO10-SIN  
 GO 0.001 Diff				   -0.21	-0.07	  50.00	   -0.14   GO10-SIN-DIF  
 Spot Jet/Kero				   50.89	 0.66	   1.31	   50.23   JET-SIN  
 Jet/Kero Diff				   -0.27	-0.01	   3.85	   -0.26   JET-SIN-DIF  
																						
 For a list of derivatives prices, including margins, please double					 

click the RICs below. Brent M1 BRENTSGMc1 Gasoil M1 GOSGSWMc1 Gasoil M1/M2 GOSGSPDMc1 Gasoil M2 GOSGSWMc2 Regrade M1 JETREGSGMc1 Regrade M2 JETREGSGMc2 Jet M1 JETSGSWMc1 Jet M1/M2 JETSGSPDMc1 Jet M2 JETSGSWMc2 Gasoil 500ppm-Dubai GOSGCKMc1 Cracks M1 Gasoil 500ppm-Dubai GOSGCKMc2 Cracks M2 Jet Cracks M1 JETSGCKMc1 Jet Cracks M2 JETSGCKMc2 East-West M1 LGOAEFSMc1 East-West M2 LGOAEFSMc2 LGO M1 LGOAMc1 LGO M1/M2 LGOASPDMc1 LGO M2 LGOAMc2 Crack LGO-Brent M1 LGOACKMc1 Crack LGO-Brent M2 LGOACKMc2