Asian jet fuel spot discount widens, hitting the lowest level in over six years

(1) Institutional data shows that the spot price spread of Asian jet fuel fell to its lowest level in more than six years on Tuesday, with the discount approaching $1.5 per barrel. (2) Data indicates that the last time this level of discount occurred was at the end of May 2020, when travel demand was impacted by the pandemic. (3) Trading data reveal that spot market activity for physical cargoes loading from late November to December remains subdued in the trading window, with only one jet fuel offer appearing in the market. (4) Traders attribute the overall downward trend in jet fuel spot spreads since mid-October to ample supply in Northeast Asia. (5) In addition, the widening premium in near-term contracts in the paper market further adds pressure to the spot discount.