Evidence of Jet Fuel in Bunker Chain Limited

by Ship & Bunker News Team
Monday October 5, 2020

While some jet fuel -- or more precisely the main component of jet fuel straight-run kerosene -- is reported to be entering the bunker fuel chain, it would seem to be happening in Asia rather than other markets, if it is happening at all.

LQM Petroleum Services chief executive Daniel Rose told marine news provider Tradewinds that while using kerosene in VLSFO production is becoming more visible "we are only seeing this happen in Asia currently."

In terms of numbers, price reporting agency Argus Media has reported up to 4,700 metric tonnes that could be blended into the monthly sales of 4mt  of VLSFO in Singapore.

In Europe, market sources told Ship & Bunker that while there is talk of the practice, there is little evidence of it happening.

"I haven't seen it," said one Europe-based marine fuel broker.  "If it is happening, it is on a super small scale," he added.

Ultimately, what happens in the refined products market is an expression of the markets being interlinked.

With jet fuel in contango (future price is higher than spot price), buying now and hanging onto the product until the demand for plane travel revives, could be an attractive option to players with access to long storage.

Ship & Bunker News Team
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