SINGAPORE: Asia's jet fuel cash premium to Singapore benchmark prices started the week at a three-session high of 95 cents a barrel, supported by cold snaps in North Asia and a healthy global economy, traders said.
- The current jet fuel premium was in sharp contrast to the average for January, which was a small discount of 0.03 cent.
- Recent very cold weather in Japan and South Korea had given jet fuel a lift as refiners needed to maximise kerosene at the expense of jet fuel.
- Kerosene is used as a heating fuel in Japan and South Korea.
- Demand for jet fuel for air travel was also seen strong, especially with the Lunar New Year taking place this week.
- However, rising oil prices could impact air travel as airlines would like to pass the cost on to consumers.
- International Air Transport Association CEO Alexandre de Juniac said he believed there was a consensus among airlines that an oil price of around $65 to $70 remained "acceptable".
INVENTORIES: European inventories of refined products at the end of January were down by more than 6 percent from a year earlier, driven by a drawdown of middle distillates, Euroilstock data showed on Friday.
TENDER NEWS: India's Essar Oil has offered up to 70,000 tonnes of 500 ppm diesel for March 17-21 loading from Vadinar through a tender closing on Feb. 13.
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