16 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Demand for jet kerosene on the European spot market remains low, but there is some hope the peak of the summer holidays will lift buying levels, sources said on Tuesday.
An airline source said low volumes traded on the open market in the past few weeks are a sign there has been no interruptions to airlines or the supply chain and at present airlines were using their estimated contract commitment levels of fuel.
The source also added that the current warm weather could contribute to greater flying demand and result in a “jolly summer”.
Other market participants agreed there was some upside to demand with a number of weeks left of holidays.
However, they conceded the demand in year-on-year comparisons may not match that of last year when the London Olympics and Euro 2012 football championships bolstered summer air travel.
In June 2012, a surge in demand coincided with 17-month lows in prices and 43 barges changed hands. By comparison, June 2013 saw just 16 barges traded.
July 2012 saw 31 barges traded, while the running tally for July 2013 is just three barge trades.
Outright barge prices increased slightly on Tuesday to $983.75/tonne FOB (free-on-board) ARA (Amsterdam-Rotterdam-Antwerp).
Differentials were mostly stable this week with cargoes at $63-65/tonne and barges at $64/tonne on Tuesday.
($1 = €0.77)
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