02 October 2012 16:10 [Source: ICIS news]
LONDON (ICIS)--A market source on Tuesday said there were only nine jet fuel barge trades in September, the lowest number of deals in a month recorded in the last four years.
“There were only nine MOC (market on close) deals during September - this is definitely not normal,” one source said.
“This is the first time its happened in the last four years,” the source added.
Sources' opinions are mixed as to what was the root cause of the low amount of trades seen last month. Some suggest that consolidation and reduced capacity in the aviation industry have resulted in lower demand for jet fuel.
One source said airlines may have bought too much fuel during the peak summer season, resulting in lower demand for September volumes.
Other sources said the lack of trades was a result of barge differentials over ICE gasoil being higher than those of cargoes at some points during September, making the purchase of cargoes more attractive.
Sources added October has got off to a firmer start, with evidence of higher levels of demand as a result of tight supply.
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