SINGAPORE- Asia's cash premiums for jet fuel slipped to their lowest in more than two weeks on Tuesday, hurt by muted buying interest for physical cargoes, while traders remain concerned that weakness in Chinese domestic demand would weigh on the region's aviation sector. Cash differentials for jet fuel slipped to a premium of $4.11 a barrel to Singapore quotes, the lowest since March 17.

They were at a premium of $7.18 per barrel on Monday, and have plunged nearly 47% in the last week. Global airline capacity inched up 0.6% this week to 83.9 million seats, still 23.3% lesser compared with the corresponding week in pre-pandemic 2019, according to aviation data firm OAG. Total scheduled airline capacity in North East Asia in the week to Monday dropped 6.7% from the previous week as Chinese airlines trimmed capacity amid ongoing travel curbs, while scheduled seats in South Asia dipped 0.7%, OAG data showed.

"China continues to respond to the latest COVID-19 outbreak with travel restrictions which have seen sizeable reductions in domestic capacity, especially to and from the Shanghai region," OAG said in a statement.

"With limited international capacity still operating from China, this market is all about what is happening domestically." Refining margins, or cracks, for jet fuel weakened to $25.51 per barrel over Dubai crude during Asian trading hours, compared with $27.45 per barrel on Monday.

U.S. JET FUEL SHORTAGE

- Jet fuel prices are soaring on the U.S. East Coast, home to some of the world's busiest airports, with buyers anticipating a worsening shortage as supply dwindles amid sanctions on Russian energy exports.

- The East Coast largely relies on shipments on the Texas-to-New Jersey Colonial Pipeline for refined products, as well as imports from Europe. However, Europe is dealing with its own supply strains, so distillate exports to the U.S. East Coast - also known as PADD 1 - are down nearly 60% on a year-on-year basis, according to Refinitiv Eikon data. - East Coast jet fuel costs have reached record highs in recent days, with spot prices in New York Harbor exceeding $7.30 per gallon on Monday, more than double the seasonal average, according to Refinitiv Eikon data .

SINGAPORE CASH DEALS

- No gasoil deals, no jet fuel trades

OTHER NEWS

- Russia maintained gas flows through key pipeline routes into Europe on Monday, despite uncertainty over payment terms and as the EU said it would "significantly tighten" further sanctions against Moscow amid allegations of war crimes in Ukraine.

- Oil prices rose on Tuesday, raising concerns of tighter global supply, while Iran's nuclear talks with world powers stalled.

(Reporting by Koustav Samanta; Editing by Shailesh Kuber)