19 January 2010 17:59 [Source: ICIS news]
LONDON (ICIS news)--Jet kerosene prices are poised to fall after Japan Airlines (JAL) filed for $25bn (€17bn) bankruptcy protection and said it would cut jobs and routes, further reducing fuel demand, analysts said on Tuesday.
“It definitely dampened market sentiments,” said an aviation fuel consultant based in Florida, the US.
“Another global airline has gone bust, signalling how weak the market demand is. The short-term jet fuel prices are expected to go down,” the consultant added.
European jet kerosene prices had already fallen this week in line with the drop in gas oil prices as the temperature rose across Europe, denting demand for heating fuel.
The recent cold spell spurred spot demand for gas oil, causing some floating vessels to come ashore. The improved supply had already sent gas oil prices lower, another source said.
Gas oil barge prices ended the week at $670.5/tonne FOB ARA, down from the $701.25-702.25/tonne range set the previous week, according to global chemical market intelligence service ICIS pricing.
Gas oil cargoes finished at $672.5-674.5/tonne CIF NWE, down from $706.25-707.25/tonne.
($1 = €0.69)
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