August Europe Jet Fuel Imports Seen 19% Higher Than July
An increase in Europe-bound jet fuel imports for August may help explain tumbling premiums being paid for the middle distillate, as volumes anticipated to reach the continent appear to exceed the prior month by 19%.
August jet cargoes arriving in northwest Europe and the Mediterranean are tallied by the OPIS Tanker Tracker at 1.83 milion metric tons (about 14.5 million bbl) loaded on 32 tankers, compared to 1.53 million tons for July.
Of these vessels, some 1.23 million tons is estimated to be heading for north west Europe, and a further 430,000 tons for ports in the Mediterranean. Earlier in August volumes looked even higher, but some vessels appear to have loaded later, with estimated arrival dates in Europe now for early September.
Jet fuel for northwest Europe is priced by setting premiums, or a differential, to be paid over the price of front-month gasoil. In three trading sessions this week, the differential has plunged by about $15.50. Jet fuel for northwest Europe was assessed at a $71 differential over September gasoil on Aug. 13. That’s down from 2014 highs of over $86 seen earlier this month.
The OPIS Tanker Tracker compiles information from brokers, trading and satellite tracking data to assess cargo volumes seen arriving in the region, with imports coming from refineries in the Middle East Gulf, Red Sea, India and Asia. One cargo is seen leaving Russia for Scandanavia.
BP appears to be the biggest importer of jet fuel into Europe so far, with 429,000 tons of cargoes that have either discharged already or are on the water. That’s followed by Shell at 335,000 tons and Vitol at 273,000 tons.
Volumes seen arriving for September are currently at about 1 million tons. The OPIS Tanker Tracker already identified 15 vessels that are chartered to load jet fuel and destined to arrive next month.