SINGAPORE: Asia’s cash premiums jet fuel rose on Tuesday, climbing to their highest in more than a month, riding on a steady recovery in the region’s aviation demand, primarily led by China’s domestic market.
Cash differentials for jet fuel jumped to a premium of $5.68 a barrel to Singapore quotes, the highest since April 4. They were at a premium of $3.90 per barrel on Monday.
“As has been the trend in recent weeks, the largest week-on-week capacity changes have occurred in China with a net effect of 1.9 million seats being added back to domestic schedules in North East Asia this week after last week’s reductions,” aviation data firm OAG said in statement.
Total scheduled airline capacity in Northeast Asia in the week to Monday rose 13.7% from the previous week, OAG data showed. Global airline capacity increased by 2% this week to 90.7 million seats, the highest so far this year, according to OAG. Refining margins, or cracks, for jet fuel rose to $33.78 per barrel over Dubai crude during Asian trading hours, compared with $33.60 per barrel a day earlier.