Europe-Bound Jet Fuel Tankers Tracked to U.S. Tops Six Million Barrels
The OPIS Tanker Tracker on FleetMon.com has identified 13 Europe-bound tankers carrying 767,000 metric tons jet fuel (just over 6 million barrels) that have diverted to the U.S. so far in 2014, with the rare voyages the result of lower-than expected demand that lead to a glut of the middle distillate on the continent, depressing prices.
Tankers, carrying a total of 202,000 tons of jet fuel, first began diverting and arriving in the U.S. in January, and appeared to peak in February when nearly 400,000 tons of Europe-bound jet fuel reached the Atlantic coast as local prices there spiked, opening up the rare arbitrage opportunity.
Some 105,000 tons was seen arriving in March, with 100,000 tons so far in April tracked to the U.S. mostly loaded from India and the Middle East Gulf.
Nearly half the diverted jet fuel was discharged at the Florida port of Port Everglades, which is normally supplied by Venezuela’s Amuay refinery, which cut production in December, after a fire. At least 250,000 tons arrived on the east coast, near New York.
Import data from the Department of Energy released earlier this week showed jet imports into the East Coast pushed the three-week average to 111,000 b/d, the highest rate since March 2008.
Traders diverted ships after barge and cargo prices in northwest Europe plunged to near nine-month lows during March, as warmer-than expected weather stifled gasoil demand. That curbed premiums paid for jet fuel, pressuring cracks, or profit margins, for producing the fuel.
The OPIS Tanker Tracker is the most comprehensive jet fuel shipping list in the business, tracking real-time cargo shipments specifically for the European jet fuel market and providing detailed shipping information, such as vessel name, volumes and buying or selling party. Learn more and take advantage of a 21-day, no obligation free trial at www.opisnet.com/products/europe-jet-tanker-tracker.aspx