19 September 2012 10:51 [Source: ICIS news]
LONDON (ICIS)--The European jet kerosene open market trading window has not seen a cargo trade in eight trading days due to weaker demand, sources said late on Tuesday.
The last cargo trade was on 6 September with Total buying a 30,000 tonne cargo from Vitol.
A source said the limited buying activity may be a result of the end of summer demand combined with buyers delaying purchases to gauge the market.
Vitol has been the only company to offer in the cargo market since the last trade; however, buying interest has remained on normal levels. Cargo differentials softened to $84-86/tonne (€65-66/tonne) on Tuesday.
A trader said the price softening early this week promoted action in the paper market but it is yet to spur spot physical trade.
“It seems like everyone is holding back waiting to see where the market is going,” the trader said.
The barge market has also been inactive, with just five trades since 31 August, with BP the only buyer.
Barge differentials eased to $78-82/tonne on Tuesday with no bids seen. There were also no bids on 14 and 17 September.
However, Koch, Vitol, Lufthansa and BP have all offered barges this week, which could encourage buying.
On Tuesday, barges were at $1,066.50-1,070.50/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp), while cargoes were at $1,072.50-1,074.50/tonne CIF (cost, insurance and freight) NWE (northwest Europe).
($1 = €0.77)
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