Jet Kerosene Methodology
Jet kerosene is a blend of hydrocarbons, a product of petroleum refining which belongs to the middle distillate group. The product grade covered by ICIS pricing is A-1, which has a stricter specification compared to normal kerosene and normally used in commercial airliners. In some regions, a lower quality specification kerosene or a dual-purpose grade is produced and usejet ketd as a domestic heating fuel, especially in Asia and notably in Japan and Korea.
ICIS pricing quotes jet kerosene in Europe, Asia and the USA on both a daily and weekly basis.
Frequency:
- Published daily as a global report
- Published weekly on Tuesdays as a global report
Jet Kerosene
Daily Price Assessments:
JET KEROSENE:
- CIF CARGOES NWE (USD/MT)
- FOB BARGES ARA (USD/MT)
- FOB CARGOES MED (USD/MT)
- FOB SINGAPORE (USD/BBL)
- CFR JAPAN (USD/BBL)
- FOB NYH (US CTS/GAL)
- US GULF (US CTS/GAL)
GASOIL:
- EU CIF CARGOES NWE (USD/MT)
- EU FOB BARGES ARA USD/MT)
GASOIL NON-EU:
- CIF CARGOES NWE (USD/MT)
- CIF CARGOES MED (USD/MT)
Weekly Price Assessments:
NWE/MED Spot Prices
- CIF CARGOES NWE (USD/MT)
- FOB BARGES ARA (USD/MT)
- FOB CARGOES MED (USD/MT)
North & South America Spot Prices
- FOB NYH (US CTS/GAL)
- US GULF (US CTS/GAL)
AG, Pacific & Far East Spot Prices
- FOB SINGAPORE (USD/BBL)
- CFR JAPAN (USD/BBL)
General Information:
Assessment window:
Price assessments are based on information supplied by market participants through the day up to the normal close of business in each region.
Please note: On the weekly jet kerosene report, the price assessment tables shows price changes from the previous day.
Specifications:
ASIA
Jet Kerosene assessments are based on the standard commercial aviation quality as defined by the UK Ministry of Defence in DEFSTAN 91/91 latest issue (previously DERD 2494) or ASTM D1655. The product would have a typical density of 0.800 at 15 deg C and a freeze point of -47 deg C maximum.
EUROPE
Jet Kerosene quality is based on the standard commercial aviation quality as defined by the UK Ministry of Defence in DEFSTAN 91/91 latest issue (previously DERD 2494). The product would have a typical density of 0.800 at 15 deg. C. and a freeze point of -47 deg. C maximum.
EU Gasoil Cargo assessments are based on qualities meeting the French Fuel Oil Domestique (FOD) and German Deutsche Industrie Norm (DIN) heating oil grades with a typical density of 0.845 at 15 deg C and a sulphur content of 0.20 pct maximum. For Barges the assessment is based on German DIN quality as above and in line with the IPE Gasoil Futures Contract. Cold properties vary seasonally.
Russian Gasoil assessments for NW Europe and the Mediterranean are based on the normal export qualities from the Baltic and Black Sea ports respectively meeting a sulphur content of 0.20 pct maximum.
USA
The products assessed are normal US domestic qualities traded in New York Harbour and on the US Gulf Coast. For Distillates the products reflect fungible qualities meeting the appropriate Colonial Pipeline Company specifications for the respective grades, with the usual seasonal variations.
Jet Kerosene quality is based on fungible product meeting the Colonial Pipeline Company specification for 54 grade.
Timing
In Asia, the Jet Kerosene Cargo assessments delivered Japan are based on a delivery window of 4-6 weeks forward from the publication date. Jet Kerosene Cargoes FOB Singapore reflect a forward delivery window of 15-30 days.
In Europe, the forward delivery window for Cargoes is 5-15 days from the publication date, while on Barges FOB ARA a forward delivery window of 2-12 days is used.
In the US, FOB New York Harbor is assessed using a forward delivery window of 2-12 days on the Colonial Pipeline. The Distillate assessments in the US Gulf relate to products moving into the Colonial Pipeline system, which normally operates on three cycles per month, and reflect the relevant forward cycle trading at the time of publication, typically 2-12 days.
Terms:
30-60 days after bill of lading date.
Standard cargo sizes:
In Asia, the FOB Singapore and CFR Japan assessments for Jet Kerosene are based on minimum cargo sizes of 12,500 tonnes or 100,000 bbls and up to a maximum of 250,000 bbls.
In Europe, Barges FOB ARA are typically traded in parcels of 1,000-5,000 tonnes. For Cargoes in NW Europe shipments in the range 10,000-30,000 tonnes are considered in the assessments, while for cargoes in the Mediterranean the typical cargo size is 20,000-30,000 tonnes.
In the US, a minimum parcel size of 25,000 bbls is considered for the US Gulf and FOB New York Harbor pipeline assessments.
Assessment basis:
Asian price assessments are dominated by Singapore FOB spot prices, with an attached premium or discount. The FOB Singapore premium/discount takes into account physical spot cargoes about two to three weeks forward from the publication date. The CFR Japan assessments are generally FOB Singapore plus a freight differential based on medium range vessels between Singapore and Chiba, Japan.
In Europe, the price assessments are based on actual recorded trades and bid/offer levels throughout the European day up to and including the end of day "Window". For Jet Kerosene and Gasoil the price assessments in NWE (Cargoes CIF NWE and Barges FOB ARA) are based on the average premiums or discounts assessed throughout the day and added to or deducted from the settlement price for the appropriate month of IPE (International Petroleum Exchange) Gasoil Futures Contract. The Jet Kerosene Cargoes FOB MED assessment is calculated as a netback of the Cargoes CIF NWE price using spot freight rates sourced from shipbrokers for a clean modern 30,000 tonnes cargo basis Augusta to Rotterdam.
In the US, the price assessments are derived from actual trades reported, bid/offer levels and differentials to the NYMEX futures contracts. For Jet Kerosene, Low-sulphur Diesel and Heating Oil are linked to the settlement prices for the relevant month of the NYMEX Heating Oil Futures Contract. Reports also offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.