Mangalore Refinery and Petrochemicals Ltd has sold 36,000 tonnes of jet fuel for January to Mercuria at weaker levels.

Industry sources said that the refiner sold the jet fuel cargo for loading over January 9-11 to Mercuria at a discount of between USD 1.55 and USD 1.65 a barrel to benchmark Singapore quotes.

MRPL last sold a similar sized cargo for loading in late December to Trafigura at a discount of USD 1.50 a barrel.

While the levels done for the most recent tender were weaker than the previous cargo sold, traders said the numbers looked too strong, given the weak jet fuel market.

A Singapore based middle distillates trader said that "I don't think this cargo is priced to be sent to Singapore...the number looks too strong.”

Jet fuel prices for the prompt month weakened to a more than two month low on Thursday, with the December/January contango widening by 6 cents to minus 25 cents a barrel, Reuters data showed.

Traders said that Europe's debt crisis and slower air travel in winter has dampened the demand for jet fuel, effectively shutting any arbitrage opportunities to send the product over from Asia.

(Sourced from ET)