SINGAPORE: Asian jet fuel refining margins rose on Tuesday, despite firmer feedstock crude prices, buoyed by a gradually recovering aviation demand.

Refining profit margins, or cracks, for jet fuel jumped to $16.04 a barrel over Dubai crude during Asian trading hours, their strongest in three weeks. They were at $14.23 per barrel a day earlier. Cash premiums for jet fuel rose to a two-week high of $1.66 a barrel to Singapore quotes on Tuesday, compared with a premium of $1.31 per barrel on Monday.

The March/April time spread widened its backwardated structure on Tuesday to trade at $2.13 per barrel, compared with $1.91 a barrel on Monday.

Global supply chains, already hit hard by the pandemic, are facing further disruption and cost inflation as airspace closures after Russia’s invasion of Ukraine affect the air freight industry.

Transport between Europe and north Asian destinations like Japan, South Korea and China has become particularly problematic due to reciprocal airspace bans that bar European carriers from flying over Siberia and Russia airlines from flying to Europe.

Airlines are bracing for potentially lengthy blockages of key east-west flight corridors after the European Union and Moscow issued tit-for-tat airspace bans and Washington did not rule out similar action in response to Russia’s invasion of Ukraine.