China Aviation buys 960,000-1.2m-barrel jet fuel for July-Aug

02 July 2013 10:38  [Source: ICIS news]

SINGAPORE (ICIS)--Asian jet fuel trader China Aviation Oil (CAO) has awarded a purchase tender for a total of four cargoes of jet kerosene for loading in late July and August, traders said on Tuesday.

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

The deals for the cargoes were done at a discount of less than 5 cents/bbl to Singapore market quotes free on board (FOB) Asia, traders said.

Another trader added that the South Korean-origin cargoes were not done at premium levels.

For the fourth month running, CAO did not request any cargoes for purchase on a cost & freight (CFR) Huangpu basis. Some traders viewed this as a sign of softer demand from China.

In its previous tender, CAO bought a total of four 240,000-300,000-barrel cargoes of jet kerosene for end-June and July loading at Singapore market quotes minus 30-20 cents/bbl FOB Asia, market sources said.

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)

By: Felicia Loo

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