Viewpoint: Asian gasoil recovery hinges on jet demand

Viewpoint: Asian gasoil recovery hinges on jet demand

Singapore, 7 January (Argus) — A further recovery in the Asian gasoil market will ultimately still hinge on the Asian jet fuel revival, even as the market has seen a pullback in gasoil supply in 2021, with a fall in Chinese exports and refinery closures providing some support at the end of the year and into 2022.

Asia currently still lags behind Europe and the US in terms of travel recovery, with flight numbers still far below pre-Covid-19 levels. And there is little incentive for refiners to switch yields and cease blending jet fuel into the gasoil pool as Asian regrade levels, or the Argus-assessed Singapore jet fuel swaps to Singapore 10ppm sulphur gasoil swaps, are still languishing at around $2/bl discounts.