China Aviation Oil issues tender to buy Sept-Oct jet-kerosene

27 August 2012 10:49  [Source: ICIS news]

SINGAPORE (ICIS)--Asian jet trader China Aviation Oil (CAO) has issued a purchase tender for four 240,000–300,000-barrel cargoes of jet kerosene for end-September and October loading, a company source said on Monday.

Under the tender, CAO requested cargoes for loading from northeast or southeast Asia on 21–30 September, 1–10 October, 11–20 October and 21–30 October. The cargoes are for purchase on a free-on-board (FOB) Asia basis, the source said.

The company also requested two 25,000-tonne jet kerosene cargo for purchase on a CFR (cost-&-freight) Huangpu basis for arrival on 24-26 September and 10-12 October, via the same tender, said the source.

CAO’s purchase tender will close on 29 August and has validity until 30 August.

Previously, CAO awarded a purchase tender for four 240,000–300,000 bbl cargoes of jet kerosene for end-August and September loading at a slightly firmer price level around Singapore market quotes minus 20-25 cents/bbl FOB NE Asia.

Jet-kerosene values have firmed in recent weeks supported by continued worries over tight supplies.

Supplies of jet-kerosene have been reduced because of refinery shutdowns, particularly in Singapore and Japan. Arbitrage shipments of jet from northeast Asia to the US west coast, and in previous weeks from Asia to Europe, have also reduced stocks within the region.

CAO is the largest physical jet fuel trader in the Asia-Pacific region and the key supplier of imported jet fuel to the civil aviation industry in China.

The firm’s key businesses include jet fuel supply and trading, trading of other oil products and investments in oil-related assets.

By: James Dennis
+65 6780 4327

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