Prices for spot jet fuel along the U.S. East and Gulf Coasts were little changed despite a weekend explosion and fire which Monday continued to engulf three storage tanks located near the fourth-busiest U.S. airport, U.S. cash traders said.
The explosion, which broke out near Denver's Stapleton Airport Terminal on Sunday and sparked widespread delays in airline service, destroyed an estimated 1.6 million gallons of jet fuel, according to reports.However, the amount of fuel lost was relatively small, and should not cause spot prices to rise, traders said.
"The amount of jet fuel taken out of the market is relatively small - about 40,000 barrels - and it affects only one airport," an East Coast- based products trader said. "If anything, the market would face some downward pressure, since there's less storage available and traders and refiners would have to sell off excess inventories."
Early Monday morning, prompt jet fuel in New York harbor commanded about a 6 cent premium to the New York Mercantile Exchange's December heating oil price of 94 cents to trade at $1. In the U.S. Gulf, premiums were seen at a much more modest 2 to 2.25 cents over Nymex; these levels appeared little changed from Friday.
The fuel consumed by the fire was worth about $1.40 a gallon, or a total of $2.2 million, said Richard Boulware, Stapleton Airport spokesman.