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Market Chatter: Asia-Europe Jet Fuel Trade Reopens as France Awaits 745,000-Barrel Shipment

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Europe is receiving its first jet fuel shipment from Northeast Asia since the Iran conflict disrupted trade routes in February, Reuters reported Friday, citing shiptracking data and three trade sources.

South Korea loaded around 745,000 barrels of jet fuel at Yeosu onto Vitol-chartered tanker Seriana between May 1 and May 6, the report said, citing Kpler, LSEG and a fourth source.

The Seriana transferred the jet fuel cargo near the Strait of Malacca to the Yuan Lan Wan between May 18 and May 21, with the shipment now heading to France, according to shipping data and trade sources.

After US-Israeli airstrikes targeted Iran on Feb. 28, disruptions around the Strait of Hormuz forced Asian refiners to cut refinery operations, shipping data showed.

Asian refiners also focused on meeting regional fuel demand first as uncertainty around Middle East shipping routes continued to disrupt exports westward.

Last year, Asia shipped an average of 1.5 million barrels of jet fuel to Europe each month because the region often balances European supply shortages, according to Kpler.

Limited arbitrage opportunities continue to restrict Asian jet fuel cargo movements into Europe, the report added, citing James Noel-Beswick, analyst at Sparta Commodities.

Industry sources estimated shipping costs from Singapore to northwest Europe at about $40 per metric ton, while recent regional price spreads stayed near $20 to $30 per mt, two industry sources said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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