CAO

CAO: News from industry sources that co has signed term contracts with South Korea's S-Oil Corp and Japan's Cosmo Oil Co to buy jet fuel in 2011 at higher prices than this year. CAO also is in talks with SK Energy, PetroChina Co. (PTR) and China International United Petroleum & Chemical Corp (Unipec), to renew term contracts to buy jet fuel next year...

Discounts of $0.35 per barrel were narrower than last yr’s $0.70-0.85 per barrel implying both tighter supplies this yr and perceived demand for jet fuel nxt yr. In line with CPO forecasts. May weigh on airline stocks SIA and Tiger.