Transpacific Jet Fuel Shipments Set to Increase – Traders - Maritime and Salvage Wolrd News

By Jessica Jaganathan

SINGAPORE, May 13 (Reuters) – Asian jet gasoline shipments to the United States West Coast area might decide up this month as a chronic lower in throughput at a California refinery is drawing down inventories, merchants mentioned on Wednesday.

Arbitrage economics to ship jet gasoline from North Asia to the U.S. West Coast at the moment are worthwhile, so there could be a rise in spot jet gasoline cargoes on that route over the approaching weeks, they mentioned.

Demand from the U.S. helped push up Asian jet gasoline margins to a one-week excessive on Wednesday.

An explosion in February that shut the gasoline-making unit of ExxonMobil’s Torrance 149,500 barrels-per-day (bpd) refinery close to Los Angeles diminished throughput on the refinery.

This has pushed up gasoline costs which is prompting refineries within the U.S. west coast to supply extra gasoline than jet gasoline, in flip drawing down inventories for the latter and growing import demand, one in all them mentioned.

“The U.S. west coast prompt month market is strong and has been since middle of last week…I think the ExxonMobil incident and a delayed restart is causing it,” a Singapore-based dealer who’s aware of shipments on that route mentioned.

The distillate shares, which embrace jet gasoline, within the U.S. west coast slipped by almost 4 % to 13.901 million barrels within the week to May 1, newest information from the U.S. Energy Information Administration confirmed.

Valero has tentatively fastened the “Qi Lin Zuo” to ship 60,000 tonnes of jet gasoline from South Korea to the U.S. west coast for loading in late May, merchants and shipbrokers mentioned.

Marubeni has tentatively fastened the High Progress to ship 40,000 tonnes of jet gasoline from both South Korea or Bristol Bay headed to the U.S. west coast, although this might not be confirmed.

At least two different cargoes are additionally because of be shipped from South Korea and Taiwan, together with one by BP, they added.

When the arbitrage economics usually are not worthwhile, usually only one or 2 vessels are shipped on that route, merchants mentioned.

Shipments might sluggish as soon as the agency demand begins driving up jet gasoline costs in Asia, a Singapore-based jet gasoline dealer mentioned.

“(Arbitrage economics) are well workable if you have cargo on the water, so it’s more for the prompt dates,” he mentioned.

“If you buy the oil now and ship to the U.S., by the time the cargo arrives in the U.S., the arbitrage might shut.”

Still, with demand for jet gasoline weak in Asia and provide ample with refineries largely again from upkeep, it may be a matter of which commerce move loses the least cash, a second dealer mentioned. (Reporting by Jessica Jaganathan; Editing by Biju Dwarakanath)