24 July 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European jet kerosene cargo values softened on Tuesday to $962.25-965.25 (€789-791)/tonne CIF (cost, insurance and freight) NWE (northwest Europe), down from $993.50-996.50/tonne on 20 July.
Sources said on Tuesday that events in the Middle East and Spain’s banking crisis were key factors influencing European jet kerosene prices this week.
One source said the market has been more strongly influenced this week by global events or “headline trading” rather than market fundamentals.
Outright prices for barges and cargoes firmed on Friday on the back of rising oil prices as a result of political tensions in the Middle East and investors saw a possibility of disrupted oil supply from the region.
Prices then fell sharply on Monday as ICE gasoil dropped by $27.75/tonne from Friday’s settlement when attention turned to the eurozone debt crisis.
Supply in the barge market has been extremely tight this week, with just two unsold barge offers and nine barges traded in the five days of trading from 18-24 July.
The cargo market continued to draw up to 12 bids and offers each day. However just three trades were conducted during the same period.
In the cargo market, Shell purchased 60,000 tonnes of jet kerosene and BP secured 30,000 tonnes, with Vitol and Total stepping up as sellers.
BP has been active in the barge market in recent weeks. However, Shell, which purchased jet kerosene heavily throughout June, appeared to be limiting its purchases in the barge market, directing most of the buying activities to cargoes.
Market participants said backwardation in the market was narrowing and stocks in the ARA (Amsterdam-Rotterdam-Antwerp) region rose last week to 391,000 tonnes, its highest level since early May.
($1 = €0.82)
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