Asia Distillates-Jet fuel cracks hit highest in over 3 months

    SINGAPORE, Nov 3 (Reuters) - Asian refining margins for jet fuel rose to their strongest in
more than three months on Tuesday, buoyed by a slight improvement in scheduled flights, but
surging COVID-19 cases around the world are expected to keep a majority of long-haul
international flights grounded in the near term.
    Refining margins, or cracks, for jet fuel in Singapore rose to $2.15 per barrel
over Dubai crude during Asian trading hours, a level not seen since July 28. They were at $1.40
per barrel a day earlier.
    The number of scheduled flights operating globally in the week to Monday was 45.8% lower
than the corresponding week a year earlier, according to aviation data firm OAG. This compares
with 46.4% fewer flights year-on-year in October.
    Scheduled flights in Japan were down 36.2% year-on-year in the week to Monday, while flights
in South Korea were 38.7% lower from the corresponding period last year, OAG data showed.
    Backed by firmer buying interests in the physical trade window on Tuesday, cash discounts
for jet fuel JET-SIN-DIF narrowed to 45 cents a barrel to Singapore quotes, the smallest
discounts since Aug. 25.
    
    LACK OF PASSENGER FLIGHTS SQUEEZE AIR FREIGHT CAPACITY IN PEAK SEASON
    - A sharp fall in passenger flights due to the COVID-19 pandemic, combined with rising
e-commerce demand, is setting the stage for tight capacity and a renewed rise in air freight
rates heading into the peak Christmas season.
    - Dedicated air freighters are flying more hours of the day than usual to help make up for
the decline in passenger belly space and some airlines are running "ghost flights" without
passengers due to attractive cargo rates, but capacity and demand remain mismatched, according
to industry experts.
    
    SINGAPORE CASH DEALS
    - No jet fuel trade, one gasoil deal.
    
    OTHER NEWS
    - UK airline Virgin Atlantic called on Britain to introduce a passenger testing regime to
allow quarantine-free travel once England's new lockdown ends on Dec. 2, warning that any delay
could result in airlines needing state support.
    - Oil prices extended their rally on U.S. Election Day amid a recovery in financial markets
on Tuesday, but concerns over surging coronavirus cases around the world capped further gains.


    ASSESSMENTS
 MID-DISTILLATES                                         
 CASH ($/T)             ASIA CLOSE       RIC
 Spot Gas Oil 0.5%                41.50  GO-SIN
 GO 0.5 Diff                      -1.49  GO-SIN-DIF
 Spot Gas Oil 0.25%               41.80  GO25-SIN
 GO 0.25 Diff                     -1.19  GO25-SIN-DIF
 Spot Gas Oil 0.05%               42.00  GO005-SIN
 GO 0.05 Diff                     -0.99  GO005-SIN-DIF
 Spot Gas Oil 0.001%              42.62  GO10-SIN
 GO 0.001 Diff                    -0.38  GO10-SIN-DIF
 Spot Jet/Kero                    40.80  JET-SIN
 Jet/Kero Diff                    -0.45  JET-SIN-DIF Brent M1                                                
 Gasoil M1                                               
 Gasoil M1/M2                                            
 Gasoil M2                                               
 Regrade M1                                              
 Regrade M2                                              
 Jet M1                                                  
 Jet M1/M2                                               
 Jet M2                                                  
 Gasoil 500ppm-Dubai                                     
 Cracks M1                               
 Gasoil 500ppm-Dubai                                     
 Cracks M2                               
 Jet Cracks M1                                           
 Jet Cracks M2                                           
 East-West M1                                            
 East-West M2                                            
 LGO M1                                                  
 LGO M1/M2                                               
 LGO M2                                                  
 Crack LGO-Brent M1                                      
 Crack LGO-Brent M2                                      
 
 (Reporting by Koustav Samanta; Editing by Devika Syamnath)