Nov 17 (Reuters) - India has exported its first-ever jet
fuel cargo to the U.S. West Coast for energy major Chevron ( CVX )
, according to trade sources and shipping data, seizing
upon a rare arbitrage opportunity to fill supply shortfalls in
Los Angeles.
U.S. West Coast jet fuel production has been curtailed since
October, after a fire at Chevron's ( CVX ) 285,000 barrel-per-day El
Segundo refinery in southern California forced the company to
take multiple units offline.
About 60,000 metric tons (472,800 barrels) of the aviation
fuel was loaded on Panamax tanker Hafnia Kallang between October
28 and 29 from the Jamnagar port, where Reliance Industries
run a refinery, according to data from Kpler, LSEG and
four trade sources.
Castleton Commodities chartered the ship, which is expected
to arrive in Los Angeles in the first half of December, multiple
shipbrokers said.
All the sources spoke on condition of anonymity. Reliance
and Castleton did not respond to requests for comment.
Chevron ( CVX ) declined to comment on commercial matters, saying it
expected to complete repairs to the El Segundo jet fuel
production unit in early 2026.
U.S. WEST COAST IMPORTS TO REMAIN ELEVATED
U.S. West Coast jet fuel supply could remain tight until the
El Segundo repairs are completed, two trade sources said.
"Chevron ( CVX ) remains focused on supplying its customers around
the world, including those supplied by the El Segundo refinery,
and may utilise local or imported product to do so," the company
said in a statement.
However, traders said it was unlikely that the U.S. West
Coast would receive frequent imports from India, as shipments
from Northeast Asia are cheaper.
Shipping costs for about 40,000 metric tons of refined fuels
from South Korea to the U.S. West Coast have held steady around
$40 per ton since October, SSY pricing data showed.
Spot shipping rates between India and the U.S. West Coast
are typically not readily available as the route is less common.
Last month, Northeast Asia-origin jet fuel exports to the
U.S. West coast were at five-month highs of about 600,000 tons,
Kpler shiptracking data showed.
Arbitrage economics have stayed healthy with U.S. West Coast
jet fuel prices at $10 per barrel above spot free on board
prices in Singapore, Asia's benchmark.
U.S. West Coast jet fuel stocks stood at a three-month low
of 11.12 million barrels on November 7.