Northwest Europe jet kerosene storage volumes at record highs

26 March 2009 12:49  [Source: ICIS news]

LONDON (ICIS news)--Storage volumes of jet kerosene in northwest Europe have reached record highs this week of potentially more than 1m tonnes, market sources said on Thursday.

Around 350,000-500,000 tonnes of jet kerosene were likely to be in floating storage, which was more than the entire amount of jet kerosene reported to be in storage at the same time in 2008, around 200,000 tonnes, sources said.

According to sources, the need for floating storage indicated both a lack of space in Amsterdam-Rotterdam-Antwerp storage tanks and the continuing steep contango in ICE gasoil. This, sources said, made sellers reluctant to offload material.

Similar strategies were seen in northwest Europe oil markets during February.

Cargoes were reported to be coming in northbound through Suez at the end of last week.

Market participants said that liquidity was down and that the market was very long with little demand.

Europe imports between 1-1.5m tonnes of jet kerosene every month.

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By: Alexander Nimmo
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