European Jet Fuel Imports to Drop to 1.1 Million Tons This Month
Wednesday, 14 March 2012 | 00:00
Shipments of jet fuel to Europe from Asia and the Middle East are set to drop in March after rising last month, according to reports from five shipbrokers including Delhi-based Interocean Shipping.
A total of 1.1 million metric tons will be shipped or provisionally booked to the region from India, South Korea and the Middle East, the shipbroker reports showed. That’s down from 1.3 million tons in February.
Europe’s air traffic is forecast to fall by 1.3 percent to 9.7 million flights this year amid slowing growth and rising fuel costs, the European Organization for the Safety of Air Navigation, or Eurocontrol, said in a Feb. 29 report. That would be a second annual drop, the Brussels-based group said.
Premiums (JETSNECC) for jet fuel cargoes on the continent averaged $68.56 a ton more than benchmark gasoil futures this month, up from $61.70 a ton in February, according to data compiled by Bloomberg.
“The weakness of the European economy and the fuel price have already had a major impact on the airlines, which have cut back on the number of flights harder and faster than we expected,” David Marsh, Eurocontrol’s head of forecast and traffic analysis, said in the report.
Jet fuel stockpiles in independent storage at Europe’s Amsterdam-Rotterdam-Antwerp oil hub declined 11 percent to 515,000 tons in the week to March 8, according to PJK International BV, a researcher in the Netherlands. That was the lowest in six weeks.
BP Plc sold a 30,000 ton cargo of the aviation fuel to Morgan Stanley on March 8 for delivery to the French port of Le Havre, according to a survey of traders and brokers monitoring the Platts pricing window. The cargo was partly priced at a premium of $69 to April gasoil in the ICE Futures Europe exchange in London, unchanged from a trade on March 7.
April gasoil, the benchmark for jet fuel, diesel and heating oil, dropped 0.4 percent to $1,029.75 a ton as of 8:49 a.m. today in London.
The following table lists a selection of oil tankers scheduled or provisionally chartered to Europe from the Middle East and India this month:
SHIP NAME LOADING VOLUME (tons)
Sovereign March 7 65,000
Four Sky March 9 90,000
Sea Frontier March 10 40,000
Gulf Crystal March 12 65,000
Elka Athina March 15 90,000
Gan-Dignity March 15 90,000
Northern Spirit March 23 90,000
Botafogo March 25 90,000
N. Mars March 25 65,000
The following table lists the monthly volume of shipments to
Europe since March 2011 based on shipbroker reports and surveys
of traders and brokers:
MONTH VOLUME (tons)
March 1.1 million
February 1.3 million
January 0.8 million
December 0.8 million
November 1.5 million
October 1.2 million
September 0.9 million
August 1.3 million
July 1.5 million
June 1.3 million
May 1.6 million
April 1.2 million
March 1.2 million