December 23, 2015 [OPIS] - OPIS Asia reports that in China, domestic refiner Sinopec has exported record high volumes of jet fuel over the January-November 2015 time frame from its 470,000-b/d Maoming refinery.
The higher volumes of jet fuel reflect a shift in production to jet fuel and away from gasoil because of weaker domestic demand.
The Chinese oil major exported approximately 9.27 million barrels of jet fuel from its facility over the first 11 months, surpassing its previous year’s total of 7.29 million barrels, or up approximately 27%.
OPIS Asia reports that some market players anticipate supply of jet fuel likely to swell from North Asia, adding to the glut in supply, which might continue to drag on prices.
At the moment, regional demand for jet fuel is called “tepid,” and some market participants are looking for potentially deeper discounts to Singapore quotes for available barrels.
Adding to the overall market picture is that outlets for excess Far East barrels to flow elsewhere are limited as arbitrage windows to outside markets are “unworkable,” according to sources.
Jet barrels FOB Singapore are running just under $44.50 to 44.75/bbl, according to OPIS Asia current assessments.
