28 November 2012 08:27 [Source: ICIS news]
SINGAPORE (ICIS)--Asian jet trader China Aviation Oil (CAO) has issued a purchase tender for a total of six cargoes of jet kerosene for loading in late December and January, industry sources said on Wednesday.
The CAO tender is requesting four 240,000-300,000 bbl cargoes of jet kerosene for loading from northeast or southeast Asia on 21-31 December, 1-10 January, 11-20 January and 21-31 January. The cargoes are for purchase on a free-on-board (FOB) Asia basis, sources said with pricing linked to FOB Singapore market quotes.
CAO is also requesting two 25,000 tonne jet-kerosene cargoes for purchase on a CFR (cost & freight) Huangpu basis for arrival on 27-29 December and 7-9 January, via the same tender, said the sources.
The CAO purchase tender will close on 29 November and has validity until 30 November.
Previously, CAO awarded a purchase tender for four 240,000-300,000 bbl cargoes of jet kerosene for end-November or December loading at around Singapore market quotes plus 55 cents/bbl FOB NE (northeast) Asia.
However, valuations for spot December jet-kerosene cargoes have subsequently slipped to around Singapore market quotes parity to minus 10 cents/bbl FOB NE Asia, undermined by muted buying interest and a relatively well-supplied market, traders said.
Supply in Asia has been boosted by the continued closure of the arbitrage window for the shipment of Asian jet cargoes to Europe.
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.
($1 = €0.77)
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