SINGAPORE, Aug 11 (Reuters) - Asia's cash premiums for jet fuel dipped on Wednesday, hurt by
weak demand in the physical market as most international flights remain grounded on extended
border restrictions in the region.
A steep resurgence in COVID-19 infections in several key markets including China, South
Korea and Australia have renewed pressure on the already struggling aviation sector in the
region, market watchers said.
"I don't think the international flight demand will come back this year, especially for
Asia," a Singapore-based jet fuel trader said.
Cash premiums for jet fuel slipped 3 cents to 13 cents per barrel to Singapore
quotes on Wednesday.
Refining profit margins for jet fuel inched higher by 9 cents to $5.95 per
barrel over Dubai crude during Asian trading hours.
INVENTORIES
- Middle-distillate inventories in the Fujairah Oil Industry Zone dropped 4.7% to 2.99
million barrels in the week ended Aug. 9, data via S&P Global Platts showed.
- The weekly stocks in Fujairah have averaged 3.8 million barrels this year, compared with
4.2 million barrels in 2020, Reuters calculations showed.
- U.S. distillate fuel inventories, which include diesel and heating oil, rose by 673,000
barrels in the week to Aug. 6, according to two market sources, citing American Petroleum
Institute figures.
URGENCY FOR GREEN INVESTMENT FUNDS
- Dire warnings about climate change are a call to action for investors who put their money
into helping the environment. But the news also heightens a debate about how to make these
strategies effective, financial executives said.
- A U.N climate report on Monday found that global warming is dangerously close to
spiralling out of control. Even the most severe carbon emission cuts are unlikely to prevent
global warming of 1.5 degrees Celsius above pre-industrial temperatures by 2040, a level that
many scientists believe must be achieved to avert catastrophic climate change.
SINGAPORE CASH DEALS
- No jet fuel trades, no gasoil deals
OTHER NEWS
- Oil held above $70 a barrel on Wednesday as signs of rising fuel demand in the United
States were balanced by concerns about travel curbs in Asia caused by the spread of the COVID-19
Delta variant.
- Phillips 66, the fourth largest U.S. oil refiner, is weighing a broader move into
developing battery components for electric vehicles and storage systems, according to top
executives, leveraging its own and others' research as it accelerates a shift from fossil fuels.
ASSESSMENTS
MID-DISTILLATES
CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC
Spot Gas Oil 0.5% 74.39 0.94 1.28 73.45
GO 0.5 Diff -2.41 -0.1 4.33 -2.31
Spot Gas Oil 0.25% 74.49 0.94 1.28 73.55
GO 0.25 Diff -2.31 -0.1 4.52 -2.21
Spot Gas Oil 0.05% 74.67 0.91 1.23 73.76
GO 0.05 Diff -2.13 -0.13 6.50 -2
Spot Gas Oil 0.001% 76.82 1.05 1.39 75.77
GO 0.001 Diff 0.02 0.01 100.00 0.01
Spot Jet/Kero 74.45 1 1.36 73.45
Jet/Kero Diff 0.13 -0.03 -18.75 0.16
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 Ramakrishnan M.)
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