SINGAPORE- Asian jet fuel refining margins rose on Tuesday, supported by improving regional demand, while cash premiums for the aviation fuel dipped on muted buying interest in the physical market.
Refining margins or cracks for jet fuel climbed to $12.51 per barrel over Dubai crude during Asian trading hours, compared with $12.19 per barrel a day earlier.
The jet cracks have soared nearly 37% in the last month, Refinitiv Eikon data showed.
"The outlook for Asian jet demand looks the most positive than at any point this year as it braces for the uptick in kerosene heating needs and as flight numbers are starting to increase," consultancy Energy Aspects said in a monthly note.
Scheduled airline seat capacity in China slipped 4.8% this week, while flight capacities in Japan and Australia were both up 1.8%, according to aviation data firm OAG.
"Three quarters of a million seats have been removed from the (China) schedule for this week... Elsewhere, global capacity is actually up by 80,000 seats if China is not included in the calculation," OAG said in a statement.
Cash differentials for jet fuel were at a premium of 8 cents per barrel to Singapore quotes on Tuesday, as against a 13-cent premium on Monday.
ASEAN GREEN POWER LINKS
- Southeast Asian nations are speeding up their plans to transmit renewable energy through a proposed regional power grid, with first trials set for 2022, as the area strives to meet climate change targets, government and company officials said.
- Singapore will start importing renewable electricity from Malaysia by 2022 and later that year utilities in ASEAN will start transmitting the first 100 megawatts (MW) of electricity under a Laos-Thailand-Malaysia-Singapore power integration project as part of a regional grid project.
SINGAPORE ENERGY TRANSITION
- Singapore's Energy Market Authority (EMA) said on Tuesday it is exploring the potential of harnessing geothermal energy and if found to be feasible, may use it as a source for power generation.
- The Asian city-state also plans to launch standardised guidelines for renewable energy certificates, part of efforts to decarbonise its power sector and develop a regional grid, a minister said on Tuesday.
SINGAPORE CASH DEALS
- One gasoil deal, no jet fuel trades
- The leaders of most of the world's biggest greenhouse gas emitters gather in Glasgow from Sunday, aiming to thrash out plans and funds to tilt the planet towards clean energy. But Chinese President Xi Jinping's expected absence from the talks could indicate that the world's biggest CO2 producer has already decided that it has no more concessions to offer at the U.N. COP26 climate summit in Scotland after three major pledges since last year, climate watchers said.
(Reporting by Koustav Samanta; Editing by Shinjini Ganguli) ((firstname.lastname@example.org ( +65 6870 3503)(Reuters Messaging: email@example.com))