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Market Chatter: South Korea Jet Fuel Exports Rebound To Highest Since August As Crude Imports Recover

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South Korea's jet fuel exports were back to pre-war levels in May, amid a recovery in crude oil imports and improving refining margins, according to a Reuters report, citing analysts and trade sources familiar with the matter.

This has helped ease supply concerns in the region, with spot premiums for aviation fuel down to $2 a barrel over the past two weeks, compared to a record high of $20 a barrel in March.

The country shipped out between 8.67 million barrels and 9.46 million barrels of jet fuel in May, the highest level since August, according to Reuters, citing data from Kpler and Vortexa.

May exports surged 36% from April, when shipments had fallen to a one-year low amid crude supply disruptions following the outbreak of the military conflict in the Middle East, Reuters reported, citing Kpler data. South Korean cargoes accounted for roughly 30% of Asia-Pacific jet fuel imports year-to-date, up from 23% last year.

In addition to the sharp decline in spot premiums, the regrade spreads between 10 ppm sulphur diesel and jet fuel have flipped into a discount, according to Reuters, citing LSEG data.

A fifth of these exports were bound for the US, as West Coast jet fuel swap prices have been $20 per barrel above Asian prices since the end of May.

The Korea Petroleum Association did not immediately respond to' request for a comment on this story.

(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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