London — Prompt jet FOB Rotterdam barges moved into a premium versus CIF NWEcargoes for the first time in five weeks Friday.
The Rhine levels have been low of late, with levels at Basel, inparticular, being an issue and resulting in short-loading of barges going asfar upriver as Basel. The level at the key choke point of Kaub was recorded at159 cm Wednesday.
"If you're looking to take product down the Rhine, ship owners arenot wanting to take product as far as Switzerland," one market participantsaid Monday.
Alongside this, there have been a number of vessels carrying jet fueloriginally due for June arrival into UKC that have carried over into July,resulting in less availability in the prompt. Pink Stars, which was originallyheard to have been chartered with 90,000 mt of jet fuel, was due to arriveinto UKC at the end of June, but was still to discharge at Fawley, accordingto S&P Global Platts trade flow software cFlow Monday.
Similarly the Raysut and BW Orinoco, which were also carrying jet fueland expected for June arrival, were both seen located off the UK Southwestcoast for the past seven days, but were yet to discharge Monday.
Despite the reduced availability in the prompt, supply was looking heavyfor July with over 2 million mt of jet fuel expected to arrive into NorthwestEurope according to cFlow. Demand also appears healthy for July according tomarket sources, with consumption expected to compensate for the rising supplydue into the region, and traders expecting the market structure to supportmore storage of jet over the next few months.
Stock replenishment is expected to take place over the coming months,with current levels still low and refinery turnarounds scheduled in NorthwestEurope for September. Jet-kerosene inventories in theAmsterdam-Rotterdam-Antwerp hub increased 1.1% to 667,000 mt in the week endedJune 27, according to data released by PJK International Thursday.
