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Platts Jet Fuel

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European jet fuel backwardation hits three-year high

London (Platts)--26Feb2018/856 am EST/1356 GMT


Backwardation in the European jet fuel market has hit a three-year high, emptying tanks as the region continues to struggle to attract arbitrage volumes, sources said.

The backwardation between front-month and the second-month jet CIF NWE cargo swaps hit $8/mt Friday, the highest spread seen since November 2014.

The backwardation has encouraged product out of tank, with jet fuel and kerosene stocks in the Amsterdam-Rotterdam-Antwerp and Ghent trading hub at a six-month low in the week ending February 22, according to data from PJK International.

An increase in prices in Asia has meant any jet fuel available from East of Suez markets has remained in the East, reducing volumes being sent to Europe.

FOB Singapore jet fuel spot premiums were hovering around three-year highs, assessed at $83.81/b Monday.

"Europe is desperately looking for jet. Maintenance is kicking into effect I guess, and demand always goes up year on year," a trader said.

Arrivals of jet fuel into Europe in February were just over 1 million mt according to Platts cFlow, trade flow software.

--Christopher Ewen, christopher.ewen@spglobal.com
--Edited by Dan Lalor, daniel.lalor@spglobal.com

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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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