23 April 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--The jet kerosene market is slightly long despite the maintenance season, with arbitrage product providing more than adequate flows into northwest Europe, sources said on Tuesday.
Cargo offers outweighed bids in open market trading, and shipping sources noted a number of vessels fixed for mainland Europe.
Barge differentials continued their strength over cargoes, with sources saying the maintenance season may be reducing the amount of product available in the Amsterdam-Rottrerdam-Antwerp (ARA) region, thus boosting differentials, despite balanced bids and offers seen during window trade.
Trade in the barge market increased this week (17-23 April), with 11 barges changing hands. Barge differentials were at $66-68/tonne (€51-52/tonne) on Tuesday, while cargo differentials remained below barges at $63-64/tonne.
Despite the attractive market conditions for storage with ICE gasoil in a contango of around $4/tonne between May and June contracts, stocks in the ARA region decreased this week by 55,000 tonnes.
A buyer said it was unsure why stocks had reduced, but said supply may not be reaching the ARA region as refineries are maxing diesel and the previously mentioned maintenance period.
Prices for barges were $905.50-907.50/tonne FOB (free on board) ARA on Tuesday, with prices moving up by around $12/tonne across the week.
($1 = €0.77)
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