SINGAPORE: Asian refining margins for jet fuel slipped on Thursday due to soaring crude prices, while cash differentials for the aviation fuel inched down on muted demand in the physical market.

Refining margins, or cracks, for jet fuel dropped to $12.87 a barrel over Dubai crude during Asian trading hours, 29 cents lower from a day earlier.

The jet fuel market, however, remains buoyed by hopes of improving demand as countries lift border curbs and ease quarantine requirements.

The recovery would be primarily led by domestic routes as a majority of passengers still lack the confidence to plan international travel, trade sources said.

A recent reopening of Australia’s internal and external borders has significantly boosted the outlook for Qantas Airways, although the Omicron COVID-19 outbreak has set back its business recovery plans by around six months.