Adnoc fixes 2013 jet fuel exports at higher premium - sources
SINGAPORE Nov 21 (Reuters) - Abu Dhabi National Oil Co has finalised term exports of jet fuel cargoes for next year at premiums higher than previous contracts, industry sources said on Wednesday.
The refiner finalised its jet fuel contract at a premium of $2.35 a barrel above Middle East quotes, up 17.5 percent from the $2-a-barrel premium it fetched for its January to December term cargoes this year.
The premium is also higher than the $2.05-a-barrel premium it got for cargoes to be loaded from July this year to June next year.
Buyers include Japanese trader Mitsui, oil majors BP and Total, J. Aron & Company, the trading firm of Goldman Sachs, the sources said.
Volumes could not immediately be verified.
J. Aron is likely buying the jet fuel volumes for its trading activity in the European market, the sources added.
ADNOC's term premium for jet fuel is 10 cents higher than those finalised by Middle East refiners Kuwait Petroleum Corp (KPC) and Bahrain Petroleum Co (Bapco), though this is likely due to operational reasons, a Singapore-based trader said.
"KPC has logistic problems as they have 2-3 berths, so the freight costs and costs for two ports add up for buyers, which is why KPC's term price is usually discounted," the trader said.
He added that the additional costs could add up to about 30 cents a barrel for buyers, though this could not be confirmed.
Jet fuel demand in the Middle East has been growing amid fast-growing Gulf airlines, which has pushed up premiums, traders said.
Middle Eastern carriers gained market share during the first eight months of the year, with passenger traffic rising 17.1 percent and cargo demand increasing 14 percent from a year ago, the International Air Transport Association said last month.
- First Ebola victim in Sierra Leone capital on the run
- Former WWE champ nabs suspected burglar in Arizona
- Apple iPhones allow extraction of deep personal data, researcher finds
- EU edges to economic sanctions on Russia but narrows scope |
- China's Guangdong province removes over 850 'naked officials' from their posts