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Platts Jet Fuel

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European jet fuel strength persists amid global competition

London (Platts)--16Feb2018/1119 am EST/1619 GMT


The strength in the European jet fuel market shows no sign of abating amid fresh highs Thursday evening and continued competition for global arbitrage barrels in demand hubs in Asia and the US.

Persistent buying interest in Singapore resulting from ongoing freezing temperatures saw the FOB Singapore physical regrade hit a 2018 high during the week, tempting arbitrage barrels out of India and the Middle East to head east rather than towards Europe.

As a result of this strength, the CIF NWE cargo differential hit $65.50/mt Thursday, up $1.25/mt on the day, the highest level since December, 29, 2014, while the FOB Rotterdam barge differential soared to $67.25/mt, the highest level since December 22, 2014, up from $66/mt the previous day.

A heavy maintenance season globally has coincided with low stocks in Europe and high pricing environments elsewhere.

North America continued to attract barrels, originally destined for Europe, despite reports Wednesday of the highest jet stocks in the US since June.

The Marinor left Vadinar January 18 and is due to arrive in Quebec, Canada February 18 carrying jet fuel for Trafigura, according to data from Platts trade flow software cFlow. This unusual move gave further support to European prices, with traders still finding it difficult to procure cargoes.

"With low stocks and low arrivals, we need max jet yield and we need to open the arb from the US to NWE," a trader said.

--Caroline Knight, caroline.knight@spglobal.com
--Edited by Jonathan Loades-Carter, jonathan.carter@spglobal.com

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Jet FOB Rotterdam Barg
JJet/Kero FOB Singapore Cargo
Jet 54 FOB USG Pipeline



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The Jetfuel Price Monitor is a joint Platts - IATA initiative
The index and price data shows the global average price paid at the refinery for aviation jet fuel at the reported date.

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