SINGAPORE Asia’s jet fuel cash premiums rose for a fourth straight session on Wednesday, hitting a two-week high, buoyed by recovering aviation demand across several markets.
Cash differentials for jet fuel were at a premium of $3.82 a barrel to Singapore quotes, the highest since May 11. They were at $3.35 per barrel on Tuesday.
Refining margins, or cracks, for jet fuel rose to $32.05 per barrel over Dubai crude during Asian trading hours, their strongest level since May 12. The cracks were at $28.56 per barrel a day earlier.
Meanwhile, the cracks for 10 ppm gasoil climbed to $38.01 a barrel over Dubai crude during Asian trading hours, up from $35.11 a barrel in the previous session.
Middle-distillate inventories in the Fujairah Oil Industry Zone rose 34.7% to a near three-month high of 2.3 million barrels in the week ended May 23, data via S&P Global Commodity Insights showed. This week’s stocks, however, were 32% lower compared with the corresponding week last year.
Weekly stocks in Fujairah have averaged 1.8 million barrels so far this year, compared with 3.5 million barrels in 2021, Reuters calculations showed.
US distillate inventories, which include diesel and heating oil, fell by 949,000 barrels in the week ended May 20, according to market sources, citing American Petroleum Institute figures.
Natural gas buyers in Asia and Europe are seeking to lock in supplies via long-term contracts as a buffer against volatile global prices, industry executives said, in moves that will reverse the last decade’s trend of increasing spot purchases.
Glencore Plc said it anticipates paying up to $1.5 billion to settle accusations of bribery and market manipulation, as authorities in the United States, Britain and Brazil announced that three of the company’s subsidiaries were pleading guilty to crimes.
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