29 January 2013 17:56 [Source: ICIS news]
LONDON (ICIS)--European jet kerosene values continued to firm this week but demand has been curtailed, a trader said on Tuesday.
Outright jet kerosene barge prices firmed by $11.50/tonne (€8.51/tonne)/tonne through the week (January 23-29) as a result of strong ICE gasoil values and were at the highest levels on Tuesday at $1,059.25-1,061.25/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp).
BP was the only buyer in the open market trading window this week. The petroleum major secured 92,000 tonnes of product in the cargo and barge markets, with Vitol, Mercuria and Shell on the sell-side.
A trader said demand is traditionally low at this time of year as the holiday period has ended and flying demand is weaker as a result.
However, sources said there is less arbitrage product entering Europe for the end of January and into February, with cargoes being brought to the region only on a contract or demand basis.
Shipping sources noted fixtures to move 80,000 tonnes of product to mainland Europe for loading in late January from the Middle East and India.
Meanwhile, stocks of jet kerosene in the ARA region dipped slightly to 323,000 tonnes on 24 January, from 335,000 tonnes the previous week.
In the same week in 2012, stocks in the ARA region were at 502,000 tonnes, according to ICIS.
A airline source said while stocks are low, market participants are not overly concerned about a cold snap putting pressure on prices and stocks, as Europe is in the later parts of the winter season.
The ICE gasoil market structure was in backwardation between February and March contracts of about $10/tonne late on Tuesday, which continues to deter storage.
($1 = €0.74)
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