China Aviation Oil (G92.SG) +2.7% at $1.53 in active trade, may close above $1.50 for first time since May, as strong 2Q10 performance raises earnings visibility, says Dow Jones.

Jet fuel supplier’s net profit +52.7% on-year at US$18.1 million ($24.4 million) on increased demand in China, higher gains from trading activities and contributions from associates. Revenue +78.3% at US$1.44 billion.

“CAO’s strong earnings are in line with our bullish view on the Asian aviation sector. We expect air passenger traffic in Asia to continue to register robust growth,” says DMG, which has no rating on stock.

While China’s jet fuel demand in coming quarters may not be as robust as Shanghai World Expo comes to an end, CAO hopeful take-up will be healthy as air passenger traffic continues to increase. Resistance at $1.59 (May 11 high).