Argus jet fuel Index
US jet fuel prices sank to the lowest levels in just under a month as inventories built amid waning domestic demand. Fall turnaround activity and record high jet exports limited losses, while tighter supplies in the US midcontinent soaked up some of the excess supply in the US Gulf coast.
Jet fuel stockpiles along the US Gulf coast export hub topped 16.2mn bl in early October, reaching the highest seasonal levels in eight years and leading prices in the region to post losses of more than 10¢/USG over the course of the month. Domestic demand sank under the 1.6mn b/d mark for the first time in a month.
Lower US prices saw imports to the US Atlantic and west coasts drop by half, though at least two cargoes were inbound to the US west coast for early-second half-October delivery from South Korea and Taiwan. Underpinning the market, jet fuel exports surged by 85pc to an all-time high of 377,000 b/d in mid-October.
Europe, despite healthy supply levels, managed to draw at least three 40,000t jet fuel cargoes this month as the approaching winter travel and kerosene demand could see the European market tighten in coming months. Heavy fall turnaround work in the US midcontinent saw production drop to a 17-month low leading prices to maintain premiums of nearly 24¢/USG to the US Gulf coast spot market, well above the 6.16¢/USG shipping cost. US West coast jet fuel stocks declined to 1mn bl as a production hit a 21-week low of just over 430,000 b/d alongside slowing imports.
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