September 22, 2014
The Los Angeles jet fuel differential stemmed a September swoon Monday after unplanned maintenance was announced at a Los Angeles-area refinery.
Platts assessed Los Angeles jet up 75 points to NYMEX October ULSD futures minus 3.50 cents/gal. It entered the month at plus 6.50 cents/gal, but faltered almost every day as jet fuel cargoes arrived and production picked up in the West Coast.
Traders were setting up another wave of imports out of South Korea, with the Future Prosperity just en route to Alaska or Los Angeles, likely for Tesoro, and two jet cargoes -- Abram Schulte and Overseas Andromar -- fixed for Valero to loading at month's end, according to sources and Platts cFlow vessel-tracking software. One source said the cargoes look like preparation for planned maintenance in October.
The differential firmed Monday as ExxonMobil was said to have reduced rates due to unplanned maintenance at its Torrance refinery in California, and will need to shut a crude unit. ExxonMobil said it would not comment on units but that it would meet supply commitments.
The differential reversal Monday wasn't enough to offset a 2.52-cent drop in the underlying futures, assessed by Platts at $2.6924/gal as of 3:15 pm EDT down. It was the lowest front-month ULSD futures since July 2, 2012, when it was $2.67/gal.
The outright price for Los Angeles jet dropped to $2.6574/gal, the lowest since June 28, 2012, when it was $2.6252/gal.
Gulf Coast and New York barge differentials were unchanged at minus 2.50 cents/gal and plus 0.50 cent/gal, respectively, while their outright prices of $2.6674/gal and $2.6974/gal were lows dating to May 1, 2013.
US-bound exports firm Asian market
Asian jet/kero price differentials edged higher Monday, with traders noting the continued outflow of barrels to the US.
Singapore jet/kero was assessed at a 21 cents/barrel premium to Mean of Platts Singapore, up 2 cents/b, while Arab Gulf jet/kero was assessed 10 cents/b higher at a $1.68/b premium to Mean of Platts.
Valero has put on subjects 65,000 mt of jet fuel onboard the Abram Shulte, for loading from South Korea on September 25 and slated for the US West Coast, according to ship brokers. Similarly, the supplier has fixed a 35,000 mt cargo on the same route for loading over September 28-29.
Tanzania's Petroleum Importation Coordinator is looking to buy a combination cargo -- comprising 25,258 mt of jet fuel, 1,200 mt of kerosene and 6,493 mt of 93 RON gasoline for delivery into Dar es Salaam over November 17-19. The tender closes on September 30.
PIC last bought via tender a combination cargo, which includes 26,269 mt of jet fuel, 1,250 mt of kerosene and 8,090 mt of 93 RON gasoline for October 8-10 delivery into Dar es Salaam.
For the jet fuel and kerosene portion, the cargoes were awarded at a $53.89/mt premium to Mean of Platts Arab Gulf jet fuel/kerosene assessment, CFR.
ENOC Africa was heard to be the seller.
Vietnam's state-owned Petrolimex, which accounts for more than half of domestic oil product sales, cut diesel, kerosene and fuel oil prices by 0.6%-1.2% effective Friday, to reflect recent movements in international oil markets, the company said on its website Friday. The price of kerosene was cut 1.1% to Dong 21,670/liter.
Most other oil companies in Vietnam typically make the same price adjustments as Petrolimex, resulting in almost uniform prices nationwide. Local oil retailers last cut oil product prices on September 9, by 0.1-0.7%.