02 April 2013 17:49 [Source: ICIS news]
LONDON (ICIS)--Demand for jet kerosene in Europe increased over the Easter holiday weekend, and signals the start of the summer flying period, sources said on Tuesday.
Airline sources reported higher load factors over the weekend, which requires more fuel in the plane.
“In London, the cold weather drew everyone away – we had some real heavy loads and as such some fuel demand over Easter [holiday],” the source said.
“The last week of March was very busy and we were consuming more during Easter, but our consumption was on par with our Easter targets.”
Airlines will switch from their winter schedules to summer schedules in the coming weeks, a period of increased activity and fuel demand which lasts until October.
At present, both the barge and cargo markets are well supplied with offers seen from Vitol, Statoil and BP, and prices at the lowest levels since July 2012.
However, in the coming months some participants are concerned at the timing of the maintenance season, which appears to overlap in a number of regions and could shorten supplies.
Stocks for jet kerosene in the Amsterdam-Rotterdam-Antwerp (ARA) region were at 309,000 tonnes on 28 March, down from 337,000 tonnes the previous week.
This is the second consecutive decrease week on week, despite improving conditions for storage with ICE gasoil in a contango market structure.
A source said the lower stocks could be a combination of upcoming refinery maintenance, the arbitrage from the Middle East being currently less attractive and Easter demand.
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