SINGAPORE: Asia's jet fuel cash premium to Singapore benchmark prices eased from a decade high in the previous session in response to improved supplier offers in the Singapore trading window.
After climbing sharply over the past four sessions, some market participants expected jet cash premiums to stabilise or ease as strong seasonal demand for the fuel to wanes into the coming month.
A spike in seasonal demand for kerosene used in heating, especially from Japan and South Korea, has helped to tighten jet fuel supplies and boost the overall market complex since around late-January.
FUJAIRAH STOCKS
- Middle distillates inventories in the Fujairah Oil Industry Zone (FOIZ) climbed 8 percent, or 201,000 barrels, from a week ago to a four month high of 2.712 million barrels in the week ended Feb. 26, data via S&P Global Platts showed.
- Tight arbitrage opportunities have contributed to the increase in Fujairah middle distillate stocks despite limited supply of the fuels from regional refiners due to scheduled maintenance there, trade sources said.
- Middle distillates inventories in the Fujairah oil hub were at their highest since the week to Oct. 16 but remain below the weekly average of 3.101 million barrels since records began in January 2017, Reuters calculations showed.
- Compared to year-ago levels, Fujairah middle distillate inventories are 36 percent lower.
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