In South Korea, spot cargoes on an FOB basis fell 10￠/bbl on Feb. 25 to minus 15￠/bbl against the Mean of Platts Singapore jet fuel assessment. Earlier in Feb., an arbitrage was open to export volumes to the US West Coast with the cash differential reaching 10￠/bbl on Feb. 10. A source from a Northeast Asian refinery stated, "We can foresee more jet fuel being exported [out of South Korea] than planned." A source at another Northeast Asian refinery added, " Unless the situation improves, Korean barrels will be under more pressure as Japan will be exporting more soon [following the end of the peak winter season for kerosene]." The front-month March jet fuel/kerosene swap fell to $62.58/bbl on Feb. 25, which was $ 17.14/bbl lower compared to the start of the year and the lowest front-month swap since $62.04/bbl seen on Aug. 23 2017. The spread of the coronavirus, or COVID-19, has caused the 2Q/3Q quarterly outlook to reach minus-$1.16/bbl on Feb. 25.
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