Asia jet fuel cracks rally as crude prices dip on India covid cases

London, (Quantum Commodity Intelligence) - Asian refining margins for jet kero rose 30-40 c/b on Wednesday, as hopes for a rebound in air travel kept spot and swap prices from tracking crude lower.

Spot cracks versus cash Brent for June loading were marked at $1.21/b by 16:30 Singapore time, up $0.37/b on the day, while the May crack versus cash Brent for July loading rose $0.39/b to $2.48/b.

Brent crude futures shed $2/b on Wednesday by 160:30 Singapore time over fears that Asian demand would be hit by a second wave of covid that has already locked down the capital of the world's second most-populous nation.

Yet May jet cracks have doubled since the start of the month, as optimism over a European and US recover from Covid would increased passenger and air cargo.

Several airline have made bullish statements over the past week in financial results, indicating that they expect a return to 80-90%% of pre-Covid ticket demand over the coming months.

However, that has yet to be seen in the spot market with jet kero prices remaining in firm contango as May stands at a $1.13/b premium to the spot market.

There have been no reported spot deals for jet for almost two weeks, leaving spot prices valued at a $0.60/b discount to the underlying swaps market.

The jet kero discount to 10ppm fell on Wednesday to $1.92/b from $2.47/b a day earlier after diesel demand slumped.