Indian jet fuel exports to ARA jump in May
Indian jet fuel exports to ARA jump in May
India’s jet fuel exports to ARA rose sharply in May compared with prior months, offsetting a drop that month in flows to other European customers, including France and Italy.
Four long range (LR) tankers that loaded jet fuel from India in May either arrived at ARA ports or are currently heading there, in what is a sharp rise in volume along this arbitrage route in comparison with previous months.
Tanker arrivals have boosted jet fuel stocks in the ARA region, easing the impact of tighter supply since the start of this year.
The LR2 Maersk Petrel and LR1 Scirocco already discharged in Rotterdam at the end of May/beginning of June, while the LR1 BW Orinoco and LR2 Alpine Amalia are currently heading there. All four tankers loaded from Sikka.
Indian jet fuel exports ARA were up in May from the one LR2-sized export observed in April.
As more Indian volume headed to Rotterdam last month, less headed to major regional customers France and Italy, as overall jet fuel exports to Europe remained broadly steady month-on-month.
No June loaded Indian jet fuel cargo is yet broadcasting its destination specifically for ARA.
And only one jet fuel cargo so far is seen heading towards Europe – the LR1 tanker Palawan Star, which was booked to load 60,000t of jet fuel with discharge options in the UK-Continent region.
Provisional bookings in the spot tanker market so far show at least around another 250,000t chartered to load jet fuel from Sikka to UK-Continent-Med between 3-15 June. One of these – the LR1 BW Thames, is expected to soon depart from Sikka with a 60,000t cargo, based on shipping fixtures and its current location.
Jet fuel exports to Europe are likely to firm in the coming weeks in the run up to peak summer flying demand.