July Europe Jet Imports Tracked at 2016 High as Indian Cargoes Divert
Imports of jet fuel into Europe in July remain poised to hit a nine-month high even as three cargoes -- all loaded last month from the Reliance Jamnagar refinery in India -- are seen diverting to Canada or Iceland.
Buoyed by higher-than-average exports from South Korea, some 2.3 million metric tons on 37 tankers is tracked arriving in the 28 member countries this month, according to the OPIS Tanker Tracker.
That's the highest monthly import figure since September 2015, when 2.5 million tons was shipped, data from Eurostat, The European Commission's statistics agency shows.
Last month, just over 2 million tons on 38 tankers was tracked arriving in Europe, at the start of the peak summer holiday flying season.
Four cargoes with 395,000 tons are arriving in July from South Korea, while Saudi Arabian volumes are measured at 660,000 tons, with a further 355,000 tons from Kuwait.
Monthly imports from South Korea averaged just over 200,000 tons last year, Eurostat data shows. Trade flows are mostly determined by the arbitrage, or profit, to buy jet fuel in South Korea for shipment and sale to Europe at a profit. Figures compiled by OPIS show the arbitrage has been closed since late June, with most cargoes from South Korea already loaded and on the water to make the month-long voyage to Europe.
Tankers tracked from the United Arab Emirates, normally the biggest supplier, are lower than would be anticipated, at 300,000 tons.
Diverted vessels included the Fortune Victoria, which discharged 60,000 metric tons of jet fuel at Quebec, Canada on July 3, instead of Algeciras, Spain, as first signaled. The vessel loaded in Sikka, India, from the Reliance Jamnagar refinery.
The Torm Estrid, also with 60,000 tons from Sikka, is also scheduled to arrive in Quebec on July 18, while the Navig8 Excellence is arriving in Iceland in nine days.
August volumes imported to Europe are so far tracked at 1.2 million tons on 19 tankers. Five ships with 335,000 tons have options to sail to other destinations besides Europe, including two from South Korea.