Europe jet fuel prices remain firm but activity wanes

19 February 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--European jet kerosene values remain firm, but little trading activity occurred late in the week (February 13-19) with many participants attending industry events, a trader said on Tuesday.

International Petroleum (IP) Week and the Aviation Carbon Conference are both taking place in London this week which has drawn market participants from across Europe.

Sources said trading levels and market activity will increase on Thursday and Friday as traders return to their desks.

Prices and differentials have remained high but firm, with barge differentials at $78-80/tonne (€59-60/tonne) on Tuesday and cargoes at $86-88/tonne.

In open market trading, BP, Vitol and Morgan Stanley were all on the buy side in the barge market, with eight barges traded, while Shell and Lufthansa were on the sell side. In the cargo market, Morgan Stanley was again active, buying from Vitol.

A trader said BP’s buying activity in the open market may be a result of an issue at US Delta Airlines’ Trainer refinery in Pennsylvania. The source said BP could be buying product in Europe and shipping it to the US to make up for any shortfall in jet kerosene until production resumes.

Shipping sources noted around 300,000 tonnes of product destined for the UK/mainland Europe for mid-to-late February loading dates from India and the Middle East. Kerosene was also noted moving from the Middle East to the Mediterranean.

Some sources said there was less supply coming from the Middle East and India due to refinery turnarounds currently underway in these regions; however other sources said supply continues to enter Europe at normal levels.

($1 = €0.75)

By: Kate Wilcock
+44 208 652 3214

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