JET: Arrival volumes into Northwest Europe during the month of November were slated to total as much as 1.8 million mt, according to one source Friday. “The market appears to be pretty oversupplied—it’s a question of working out how many empty ships there are for floating storage,” he said, while another said: “My bet is 1.8 million mt.” However, other sources disputed this figure. Historically, NWE imports some 1.2-1.3 million mt/month of jet fuel. “I do not think there is more than usual,” said another, adding: “There are also some re-deliveries of floating storage, but...also new floating storage being filled up. So overall I do not think there is a major change during November.” With Singapore jet prices tumbling on the back of weaker crude, the arbitrage still favored pointing barrels towards the West, he added.
Meanwhile, traders were sanguine over the confirmation that British Airways and Iberia are to join forces. The merged airline would have 419 aircraft flying to 205 destinations, with BA holding 55% of the new company and Iberia 45%. Brand names would be retained, however. “I don’t think this merger will make any difference to European demand patterns,” said a trader. “Consolidation is probably a good thing for the industry.” During the Platts Market on Close assessment process, Vitol showed two cargo bids, and Morgan Stanley one, while BP and Stasco were offered one cargo each. In the barge market, Statoil fielded three bids and three offers, with another bid from Morgan and another offer from Vitol.
16-Nov-09