26 February 2013 23:59 [Source: ICIS news]
Barge prices decreased by $38.25/tonne through the week (February 20-26), and was bolstered by a day-on-day decrease of $21/tonne (€16/tonne) on Tuesday to $1,036.75-1,038.75/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp). Yet the lower prices failed to lure buyers with just three barge trades taking place.
However, some of the limited market activity can be attributed to participants still being away from their desks following International Petroleum (IP) Week in London.
Sources said the barge market is well supplied at present with Shell and Statoil both offering product, while the cargo market is mostly balanced.
Barge differentials remained fairly stable through the week and were at $80-82/tonne on Tuesday; however cargoes strengthened to $93-95/tonne.
Sources said the recent strength in cargo differentials could be attributed to concerns that refinery maintenance in the Middle East and India would curb exports to mainland Europe, however many believe jet kerosene is flowing to the continent at normal rates.
Shipping sources noted around 380,000 tonnes of product moving from the Middle East and India to the UK-mainland Europe for late February to early March loading dates. Product is also moving from the Middle East to the Mediterranean, across the Mediterranean and from the ARA to West Africa.
($1 = €0.76)
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