China Aviation Oil Launches New Jet Fuel Tender

 

China Aviation Oil Launches New Jet Fuel Tender

China Aviation Oil Launches New Jet Fuel Tender

China Aviation Oil (Singapore) is seeking up to 1.4 million barrels of jet fuel for June and July, similar volumes to its previous tender, industry sources said on Tuesday.

CAO is seeking four 240,000-300,000 barrel cargos for loading over June 21-30, July 1-10, July 11-20 and July 21-31, traders said.

The cargos are to be loaded from Japan, South Korea, Taiwan or Singapore.

The company is also seeking 25,000 tonnes, or 200,000 barrels, of jet fuel for delivery into Huangpu over July 4-6.

The tender closes on May 30 and is valid until May 31.

CAO last bought up to 1.4 million barrels from undisclosed buyers at a discount of 40 cents a barrel to Singapore quotes.

CAO is Asia’s top jet fuel buyer and any spot purchases by the company usually keep the Asian jet fuel market well supported.

Despite ample supply, jet fuel prices in Asia has seen some support over the past few days on workable arbitrage economics to send the product from the Middle East to Europe as demand picks up in Europe ahead of the summer travel season.

A fall un underlying crude prices – which have dropped 10 percent since the start of May – is also expected to boost demand from airlines, whose profits have been hit by high fuel costs.

(Reuters)



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