SINGAPORE: Asian jet fuel refining margins climbed on Tuesday, despite firmer feedstock crude prices, as traders were hoping the Omicron variant of the corona virus, which has so far shown mild symptoms, would not be substantially disruptive to demand recovery.
Refining margins or cracks for jet fuel were at $10.32 per barrel over Dubai crude during Asian trading hours, up from $10.05 per barrel a day earlier. Scheduled capacity for global airlines in December currently stands at 366.2 million seats, which is 12% higher compared to November capacity, according to aviation data firm OAG.
“While just over 4 million seats have come out of the December schedule over the past week, this is within the range that has been seen recently and it does not appear that airlines have made large-scale schedule changes in response to concerns about the new Omicron variant,” OAG said in a statement.
Japan’s flight capacity rose 3% in the week to Monday, while seat capacity in India and Australia this week was up 0.8% and 13.7% respectively, OAG data showed.
Cash premiums for jet fuel slipped 11 cents to 36 cents per barrel to Singapore quotes on Tuesday amid muted buying interest for physical cargoes, while Refinitiv data showed the Dec/Jan time spread for the aviation fuel traded at 33 cents per barrel.
AIR TRAVEL HOPES
A nascent recovery in Asia-Pacific international travel demand has been set back by the Omicron variant as governments tighten rules, but airline bosses say they hope any backward moves will be short-lived.
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