Asian jet fuel/kerosene derivative forward curve sustained in contango for over 3 weeks

The Platts-assessed jet fuel/kerosene derivative forward curve sustained an overall contango for over three weeks since April 8.

The Platts Asian jet fuel/kerosene M5/M6 derivative time spread stood at minus 13 cents/b at the April 30 Asian close, maintaining a contango for 17 consecutive sessions, but narrowing compared to minus 28 cents/b at the April 8 Asian close.

Open interest further along the curve also surged on the week as market participants were reportedly hedging their positions and reducing risk exposure, sources said.

"Generally, both gas[oil] and jet [fuel] spreads are weaker. The [December 2025/December 2026] time spread trades are coming in from hedging mainly," a Singapore-based market source said.

Total open interest for monthly jet fuel/kerosene derivatives in 2026 surged by 250 contracts on the week, totaling 13,286 contracts on April 29, latest data from the International Continental Exchange showed April 30.

The rise was led by a spike in open interest for derivative contracts across Q4 2026. On April 29, open interest stood at 259 contracts, compared to only 9 contracts the previous week on April 22.

The uptick in open interest came alongside an increase in deferred trading.

"It's just a factor of increased airline flow... airlines always buy deferred, which means you will always have [a] contango regrade structure," a Southeast Asia-based market source added.

To add, the source reflected that the front and back of the jet fuel/kerosene forward curve "move separately", resulting in a uniquely W-shaped curve observed at the April 30 Asian close.

Open interest for 2026 monthly derivatives stood at a mere 8,520 contracts on April 1, marking a 35.87% increase on the month-to-date by April 29 at 13,286 contracts.

Also demonstrating weakness in the jet fuel/kerosene complex, the Platts-assessed Q4 2025/Q1 2026 quarterly time spread nearly halved from 11 cents/b in the first half of April, to 6 cents/b in the second half of the month, Commodity Insights data showed.