SINGAPORE: Asia’s cash differentials for jet fuel weakened for a third consecutive session on Wednesday to their biggest discounts in more than a week as aviation demand continues to take a beating from border restrictions in the region.

Cash discounts for jet fuel widened by a cent to 35 cents per barrel to Singapore quotes, the widest since June 11.

The regional jet fuel market would likely come under further pressure as refineries returning from seasonal turnarounds add to supplies, while a relatively sluggish pace in vaccinations would weigh on air passengers’ confidence to return to the skies, trade sources said.

“Asian governments are set on achieving zero cases before reopening borders, meaning flights outside of China will be largely grounded well into 2022,” consultancy Energy Aspects said in a monthly note.

“International aviation will be the slowest to recover owing to complex entry requirements in many countries,” the analysts said.

Refining margins, also known as cracks, for jet fuel dipped to $5.77 per barrel over Dubai crude during Asian trading hours, down from $5.82 per barrel a day earlier.

Middle-distillate inventories in the Fujairah Oil Industry Zone rose 6.6% to 4.3 million barrels in the week ended June 21, data via S&P Global Platts showed.

The weekly stocks in Fujairah have averaged 3.9 million barrels this year, compared with 4.2 million barrels in 2020, Reuters calculations showed.

US distillate fuel inventories, which include diesel and heating oil, climbed by 990,000 barrels in the week to June 18, according to two market sources, citing American Petroleum Institute (API) figures.