16 April 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Prices in the European jet kerosene market fell this week, although demand also eased, with airlines pessimistic about ongoing sluggish economic conditions, sources said on Tuesday.
Barge prices fell by $9.50-10.50/tonne on Tuesday to $903.75-905.75/tonne FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp), tracking crude oil prices which weakened amid concerns over the impact of slowing growth in China on global oil demand.
An airline source said while lower oil prices offered some upswing from costs, the negative impact of reduced demand on economic fears usually eroded any gains.
The source also said airlines that are highly hedged would not see much benefit from the current lower prices.
The market remains well supplied, with offers from a number of sellers throughout the week, however just four barges changed hands.
A trader said demand from end users remains limited on barges, leaving the market largely illiquid this week, with many choosing to hold onto material.
Barge differentials were at $68-70/tonne on Tuesday, while cargoes continued to trade below barges at $65-67/tonne.
Morgan Stanley and Vitol were the only buyers in the open market trading window this week, with Vitol also on the sell side with Statoil and BP. Morgan Stanley has been considerably quieter after recently purchasing 15 cargoes in the space of five days.
($1 = €0.77)
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