Spot Asia jet prices weaken, paper cracks hit 2-wk high

London, (Quantum Commodity Intelligence) – The relative price of jet kero in Asia fell compared to the curve Thursday despite firmer paper cracks, indicating a weaker prompt market but a stronger one down the curve.

Cash differentials for jet fuel fell to $0.50/b below the underlying swaps market, according to market sources, down around $0.10/b on the day.

Despite that, paper cracks firmed for the third successive day as traders expect increased demand for jet fuel as the global economy recovers.

Front-month cracks rose $0.14/b to $4.17/b while Q4 cracks rose $0.12/b to $6.49, according to Quantum data, the highest level in more than two weeks.

The firmer cracks come as crude fell around $0.60/b on the day by 1630 Singapore time.

Jet fuel, however, still remains relatively weak – at $3/b under 10ppm diesel.