SINGAPORE: Asian jet fuel refining margins fell for a third consecutive session on Monday, plunging to their weakest in more than three weeks as traders remained concerned it would take months for international aviation demand to pick up pace even as countries ease border restrictions.
Refining margins, also known as cracks, for jet fuel dropped to $12.87 a barrel over Dubai crude during Asian trading hours, the lowest since Jan. 26. They were at $13.49 per barrel on Friday.
Although the jet fuel market is expected to find support in the coming months, primarily from domestic routes, traders believe any major upside would likely be limited due to the ongoing restrictive measures on international travel in several countries.
“The headwind for jet fuel and aviation recovery is still about COVID, about quarantine, about PCR (polymerase chain reaction) tests... It involves more time, cost and planning,” a Singapore-based trader said.
“Aviation demand will depend mainly on and within the domestic markets,” she added.
Cash premiums for jet fuel fell to $1.17 a barrel to Singapore quotes, down from $1.23 a barrel at the end of last week.