Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Jet fuel cracks inch up as aviation demand struggles

Asian refining margins for jet fuel edged higher this week, but traders remained concerned the market for aviation fuel would stay depressed for the remainder of the year due to lesser number of scheduled flights operating in the region.

Refining margins or cracks for jet fuel in Singapore were at a discount of 41 cents per barrel to Dubai crude during Asian trade on Tuesday, compared with minus 88 cents per barrel a day earlier. The jet fuel cracks, which also determines the profitability of closely-related kerosene, might find some support once winter heating demand for kerosene picks up, trade sources said.

"Asian jet (fuel) markets will continue to struggle until the uptick in Northeast Asian kerosene heating demand kicks in later in the fourth quarter of 2020, as the rest of the region lags behind China," consultancy Energy Aspects said in a monthly note. "Chinese domestic flight numbers are higher year-on-year in September, meaning the country can provide little further support as regional supplies rise from present levels."

Scheduled flights in China were down by 2.3% year-on-year in the week to Monday, compared with a 4.2% drop in the preceding week, data from aviation data firm OAG data showed. Cash discounts for jet fuel <JET-SIN-DIF> were at $1.17 a barrel to Singapore quotes on Tuesday, 4 cents lower from Monday. The regrade, which is the price spread between jet and gasoil, for October stood at a discount of $2.62 a barrel on Tuesday, prompting refiners to continue blending jet fuel into the diesel pool.

(Reporting by Koustav Samanta; Editing by Shailesh Kuber)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
Between mid-2019 and mid-2020, the amount of LNG terminal capacity in construction around the world more than doubled.
Executive Viewpoint: Excelerate Energy sees huge new-market potential for FSRUs
-Cal Bancroft
Excelerate Energy is a pioneer and market leader in floating LNG regasification solutions.
Executive Viewpoint: Midstream seeks cost-effective, “fit-for-purpose” solutions amid downturn
-Gregory L. Hall
BCCK Holding encompasses BCCK Engineering Inc., an international natural gas engineering company specializing in nitrogen rejection, nitrogen rejection for landfill gas, NGL recovery, CO2 removal, helium recovery, skidded LNG plants and oxygen removal.
Regional Focus: The role of small-scale LNG in Russia’s energy agenda
-Lorenzo Micucci, John Motta
A number of factors are challenging Russia’s position in the energy markets: the change in the global natural gas landscape, the abundance of gas, expanding LNG trade, and the increased interconnectivity among pipeline systems that makes possible reverse flows.

GasPro 2.0: A Webcast Symposium

Register Now

Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.

The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.

The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.

Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.

October 21, 2020 08:30 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.