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

25 September 2012 09:41  [Source: ICIS news]

SINGAPORE (ICIS)--Asian trader China Aviation Oil (CAO) has issued a purchase tender for a total of six cargoes of jet-kerosene for loading or arrival in late October and November, a company source said on Tuesday.

The CAO tender requested four 240,000-300,000 bbl cargoes of jet kerosene for loading from northeast or southeast Asia on 21-31 October, 1-10 November, 11-20 November and 21-30 November.

The cargoes are for purchase on a free-on-board (FOB) Asia basis, the source said with pricing linked to FOB Singapore market quotes.

CAO also requested two 25,000-tonne jet kerosene cargoes for purchase on a CFR (cost-&-freight) Huangpu basis for arrival on 29-31 October and 19-21 November, via the same tender, said the source.

The CAO purchase tender will close on 26 September and has validity until 27 September.

Previously, CAO awarded a purchase tender for four 240,000–300,000 bbl cargoes of jet kerosene for end-September and October loading at much stronger level around Singapore market quotes plus 50 cents/bbl FOB NE Asia amid tighter supply and stronger refining margins for distillates.

Supplies of jet-kerosene have been reduced because of lengthy unscheduled refinery shutdowns, particularly in Japan.

Demand has also firmed as refiners in northeast Asia move to increase output of heating kerosene and gasoil in order to build stocks ahead of the winter period. The resultant shortfall in jet-kerosene supplies has raised import requirements.

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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