New CAO unit starts trading jet fuel

A new subsidiary of China Aviation Oil (CAO) began procuring jet fuel, despite an ongoing criminal investigation into huge trading losses at the Singapore-listed firm. China Aviation Oil Trading Pte Ltd (CAOT) was created in the wake of revelations that CAO, one of the main importers of jet fuel for the Chinese market, had collapsed after losing US$550m in risky oil trades. According to Singapore media the company has already sent out its first tender for 417,300 tons of jet fuel for delivery early next year. It will pay for the fuel with funds from CAO's state-owned parent company in China, or bank letters of credit, reports said.