Asia Morning Regrade Value Extends Record High on Bullish Jet Fuel Prices
The jet fuel paper market opened Asia’s morning trading session by extending record highs for regrade values and East-West spreads from the previous day’s close, reflecting persistently bullish sentiments for jet fuel in Asia, according to paper prices provided by various brokers on the morning of March 5.
The regrade value, which represents the difference between jet fuel and gasoil swap prices, rose to a premium of $120/bbl for the prompt month of April in favor of jet fuel, higher than the closing April regrade value of $70/bbl on March 4.
The highest regrade value for the prompt month prior to the start of the Iran conflict was a premium of $2.55/bbl on Feb. 26, 2018, according to OPIS data.
The prompt month E-W price spread for jet fuel, which represents the price difference between Asia and Northwest Europe, rose sharply to premiums of above $400 per metric ton for March and $100/mt for April for the morning of March 5, according to data from various sources.
In comparison, the jet fuel E-W spread typically trades in discounts and averaged a discount of $33.10/mt in 2025, according to OPIS data.
On the other hand, Asia’s gasoil prices remained at a discount to gasoil prices in Northwest Europe, with the E-W Exchange of Futures of Swaps values at discounts of $70.36/mt and $88.75/mt for March and April, respectively, on the morning of March 4.
While the general sentiment for all refined oil products is bullish from the ongoing Iran conflict and shipping disruption in the Strait of Hormuz, the jet fuel market has stood out in particular.
“Jet fuel has very specialized tank storage requirements. Therefore, there is not much stored, unlike many other products like diesel and gasoline,” explained June Goh, senior oil market analyst from Sparta Commodities.
Unlike diesel, jet cannot be easily blended and can only be produced from refineries, according to Sparta.
Furthermore, the only alternative to fossil-based jet fuel is sustainable aviation fuel with a global capacity that is equivalent to 1% of the former, Goh said.
On the other hand, ethanol and biodiesel are blended into gasoline and diesel, respectively — at much higher levels — in a few countries, which will reduce the impact of supply disruptions for the latter products.
Hence, lower existing inventories of jet fuel, compared to other refined oil products, and falling overall production rates are a “recipe for disaster” for jet fuel, Goh concluded.
—Reporting by Kite Chong, kchong@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com