 |
|
The US Navy is looking totransport jet fuel to South Korea from Japan, describing theshipment as routine even though shipping and energy brokerssaid such trade normally moves in the other direction.
The United States is involved in joint military manoeuvres with South Korea this week and with Japan next week. Both comeless than 10 days after North Korea fired scores of artilleryrounds into a South Korean island near the disputed northernmaritime border.
The navy entered the freight spot market this week tocharter an oil tanker to move at least 30,000 tonnes of jetfuel, used by the US military to power everything from tanksto fighter planes, between the two Asian countries.
The US military on Wednesday said the shipment wasroutine and unrelated to current events on the peninsula.
"This is a routine request for proposals by Military Sealift Command to move fuel on behalf of the Defense EnergySupport Center (DESC), and is unrelated to current events onthe Korean peninsula," Jeff Davis, a US Navy commander withthe 7th Fleet, said in a statement to Reuters.
But traders said flows of jet fuel into South Korea were rare.
"This is definitely unusual," said Nikhil Jain, aDelhi-based analyst with Drewry Shipping Consultants. "Thishas to do with the re-positioning of the US warships."
The US Navy is a regular buyer of jet fuel in Asia, typically asking for delivery to Japan or the Middle East,traders and shipbrokers said.
"South Korea is a major jet fuel exporter, so imports arerare," a Singapore-based jet fuel trader said. "The US Navycould secure jet fuel if it wanted in South Korea, but withthe recent activity it may need to transfer more fuel there."
The Yonhap news agency said on Wednesday that South Koreawas planning more military drills as the nuclear powered USSGeorge Washington moved out of Korean waters back to Japan.
Shipbrokers said the US Nnavy was looking to load inOkinawa, Japan and discharge in Ulsan, South Korea.
A cargo of the size specified would be enough to keep one of the George Washington's F-18 fighter jets in the air forbetween 1,000 and 1,700 hours, according to Reuterscalculations.
The US Navy, which only trades with US shipbrokers,has not chartered a spot cargo to ship jet fuel to South Koreafor at least three years, according to Reuters Freight Views.
Clean tanker rates on the benchmark Singapore-Japanfreight route have climbed to a six-month high this week,partly due to high seasonal demand from North Asia, traderssaid.
Asian premiums for December jet fuel over gas oil hit a10-month peak of $1.65 by midday.
"Winter is historically a strong season for jet because ofheating demand anyway, but if there is further demand due to (the Korean situation) we could see the regrade hitting $2.00soon," said a Singapore-based distillates trader.
Comments
