SINGAPORE, June 25 (Reuters) - Asia's cash discounts for jet fuel narrowed on Thursday, while onshore middle distillate inventories in Singapore dropped to a 2-1/2 month low. Cash discounts for jet fuelnarrowed for a second consecutive session to 76 cents a barrel to Singapore quotes, compared with a discount of 79 cents a day earlier. Increasing fears about a resurgence of the coronavirus outbreak, however, kept a lid on further gains for the differentials as traders worried reimposed curbs on travel could hammer recovery hopes for the aviation sector. Australia's flagship airline, Qantas Airways, said on Thursday it expected little revival in international travel until at least July 2021, as it slashed a fifth of its workforce and grounded 100 planes. Meanwhile, Jetstar Asia said it would cut up to 180 jobs and remove five aircraft from its fleet. An uptick in the number of domestic flights in recent weeks, prompted by easing of lockdown measures, will not be enough to boost the jet fuel market as long as long-haul international flights remain grounded, trade sources said. Despite successfully containing the COVID-19 outbreak, Vietnam said it has no plans to open up to international tourists yet over fears that doing so could lead to a second wave of infections. Refining margins or cracks for jet fuel were at $2.57 a barrel over Dubai crude during Asian trade on Thursday, 48 cents higher from the previous session. INVENTORIES - Singapore onshore middle distillate stocks slipped 0.2% to 13.9 million barrels in the week ended June 24, Enterprise Singapore data showed. - The weekly Singapore middle distillate inventories have averaged at 12.7 million barrels so far in 2020, Reuters calculations showed. This week's stocks were 23% higher year-on-year. - U.S. distillate stockpiles rose by 249,000 barrels to 174.7 million barrels in the week to June 19, versus expectations for a 620,000-barrel drop, the Energy Information Administration said on Wednesday. SINGAPORE CASH DEALS - No jet fuel trades, no gasoil deals OTHER NEWS - Oil slipped towards $40 a barrel on Thursday after a more than 5% fall the previous session, as record-high U.S. crude inventories and a resurgence in coronavirus cases cast doubt on a recovery in fuel demand. - FACTBOX-Competing claims for oil cargoes linked to Hin Leong ASSESSMENTS MID-DISTILLATES CASH ($/T) ASIA CLOSE Change % Change Prev Close RIC Spot Gas Oil 0.5% 45.33 -1.51 -3.22 46.84 GO 0.5 Diff -1.05 0.21 -16.67 -1.26 Spot Gas Oil 0.25% 45.97 -1.51 -3.18 47.48 GO 0.25 Diff -0.41 0.21 -33.87 -0.62 Spot Gas Oil 0.05% 46.86 -1.51 -3.12 48.37 GO 0.05 Diff 0.48 0.21 77.78 0.27 Spot Gas Oil 0.001% 47.10 -1.51 -3.11 48.61 GO 0.001 Diff 0.72 0.21 41.18 0.51 Spot Jet/Kero 41.33 -1.70 -3.95 43.03 Jet/Kero Diff -0.76 0.03 -3.80 -0.79 For a list of derivatives prices, including margins, please double click the RICs below. 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 Shailesh Kuber)
Our Standards: The Thomson Reuters Trust Principles.