19 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Participants in the European jet kerosene market are taking the opportunity to fill their storage tanks while prices are lower, sources said on Tuesday.
Outright barge prices decreased by $27/tonne (€21/tonne) during the week, to $958-959/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp).
A total of six barge trades took place in the last five days of trading, a slight increase on the five days prior.
A buyer said there is not a noticeable increase in demand for the Easter holiday period; however fuller flights will require about 5% more fuel, most of which will come from storage.
Stocks for jet kerosene in the ARA region were at 374,000 tonnes on 14 March, up from 322,000 tonnes the previous week. This is the third successive week stocks have risen.
A trader said it was likely participants were looking to capitalise on the lower prices and fill tanks ahead of the European maintenance season.
The trader adde the market is currently well supplied, with the barge market a good sign of product availability, despite few cargo deals or offers seen in open market trading.
However, sources said with the weakening differentials encouraging buying it will also drive refiners to maximise diesel production rather than jet kerosene as diesel margins are currently more attractive.
($1 = €0.77)
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