Asia’s cash discounts for jet fuel widened on Tuesday, to their biggest discounts in two months, as ongoing border and travel restrictions due to the COVID-19 pandemic continued to impair aviation demand. Cash discounts for jet fuel JET-SIN-DIF were at a 81 cents a barrel to Singapore quotes on Tuesday, the widest since June 23. They were at a discount of 73 cents per barrel a day earlier.
The commercial aviation sector remains under pressure as travellers are keeping away from flying not just to avoid infections, but also to steer clear of inconveniences such as quarantine periods, and medical tests, trade sources said. Airlines and airports will ask a UN-led task force meeting on Tuesday to recommend countries accept a negative COVID-19 test within 48 hours of travel as an alternative to quarantines that have decimated demand for travel, according to a document seen by Reuters. Refining margins or cracks for jet fuel flipped to a discount of 50 cents a barrel to Dubai crude during Asian trading hours on Tuesday, turning negative for the first time since May 29. There were at 35 cents a barrel over Dubai crude on Monday.
TENDERS
– Sri Lanka’s Ceylon Petroleum Corp (Ceypetco) is seeking a combined cargo of 227,500 barrels of 500ppm gasoil and 52,500 barrels of 10 ppm gasoil for discharge at Dolphin Tanker Berth and SPM Muthurajawela, Colombo over Oct. 2-3 on a DAP basis.
– Ceypetco is seeking another cargo of 280,000 barrels of 500ppm gasoil over Sept. 24-25 discharge.
– Both tenders close on August 25 and will remain valid for three days.
SINGAPORE CASH DEALS
– One gasoil deal, no jet fuel trades
OTHER NEWS
– Compliance with OPEC+ oil output cuts is seen at 95% to 97% in July, according to OPEC+ sources and a draft report seen by Reuters on Monday, two days ahead of a meeting of key OPEC+ producers to review adherence with their production pact as demand slowly recovers.
– Oil prices steadied on Tuesday, hanging on to gains from the previous session thanks to high compliance with production cuts from members of the OPEC+ producer group.
Source – SINGAPORE, (Reuters)
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