JET FUEL: US Spot Prices Post Gains as Futures Ramp Higher

    

   BURLINGTON, Vt. (DTN) -- Spot jet fuel prices in regional U.S. markets 
ranged higher Thursday afternoon, fueled by extended gains in benchmark October 
heating oil futures traded on the New York Mercantile Exchange. 

   Open market trading remained on the light side, with prompt cash deals 
reported booked in Los Angeles, Gulf Coast and New York Harbor markets. 

   NYMEX heating oil futures added to Wednesday's rally this afternoon, as a 
moderate advance in equities and extended weakness in the dollar generated 
fresh buying by noncommercial market players.

   October No.2 oil futures rallied 2.12cts to finish the day at $2.0623 gal, 
with the November contract closing 2.08cts higher at $2.0840 gal and December 
futures settling up 2.05cts at $2.1076 gal. The trio of near-term contracts was 
drifting lower at press time in thin-volume electronic trading on the Globex 
platform. 

   Gulf Coast 54-grade jet fuel traded at a penny futures premium for 51st 
cycle Colonial Pipeline shipment that moved spot price 2.12cts above its 
Wednesday closing range to $2.0723 gal. 

   Spot jet fuel in the New York Harbor was reported sold for prompt Buckeye 
Pipeline transport at a 5.5cts MERC premium that boosted spot price 1.87cts to 
$2.1173 gal.

   Los Angeles September LAX pipeline jet fuel changed hands for prompt 
delivery 8.5cts over the October NYMEX heating oil futures print that vaulted 
spot price up 2.62cts to $2.1473 gal. Spot jet fuel prices in Pacific Northwest 
and San Francisco Bay area cash markets remained indexed at par with those in 
the Los Angeles Basin. 

   Group 3 Q-grade was talked for prompt cycle Magellan Pipeline delivery in a 
wide band around a 7.0cts futures premium that lifted implied spot price 
1.12cts to $2.1323 gal. Chicago 51-grade remained indexed at a 6.0cts MERC 
premium for generic first cycle September pipeline delivery with spot price 
riding the rally in futures up 2.37cts to a notional $2.1223 gal. 

   In other news, Continental Airlines Inc. said on Wednesday its revenue per 
available seat mile---a closely watched ratio of revenue to capacity---rose 18 
percent to 19 percent in August. That followed a 21 percent rise in July and 
21.5 percent gain in June. Traffic for the month was down 0.4 percent versus 
August 2009, counting both mainline and feeder carriers. Continental said it 
flew 8.7 billion revenue passenger miles, or one paying passenger flown one 
mile. That was down from almost 8.8 billion a year earlier. 

   Its planes were fuller. Continental's load factor, or occupancy, for the 
month was 86.5 percent, up 0.7 percentage points from August 2009.

   G.Bud deGorgue, 1.802.524.1784, bud.degorgue@telventdtn.com, 
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