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Jet Fuel and its Demand

Jet Fuel Market Demand Saturated In Europe by Imports from Asia

Considering the statistics of past years for jet fuel or diesel stocks it can be seen that there has been a significant increase in the demand and the storage tank levels.

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The Europe market imports are those that come from the Middle East and Asia, the build in the market means that the cargo service providers have no choice but to use tankers which remain offshore with the oil or until they have confirmed buyers they must extend their voyages.

Under this pressure 90,000 tonne tankers including the Mindoro and the STI Lombard were both set on two different coasts for over a week awaiting buyers and further progress. The Mindoro remained on England’s southern coast while the South Korean STI Lombard remained on a Netherlands coast for a week or even more.

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Extensive research points towards a solid increase in the demand of jet fuel around Europe. This could be due to the refineries lack of jet fuel production or the increased demand that is difficult to meet.

Modern refineries are many and come from many places including India, Saudi Arabia and South Korea. The bpd goes from 400,000 to over 800,000.

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The downfall in the whole market is more so for the traders and sellers as the low price of jet fuel means that they remain unsatisfied with the profit from this trade. This means that there has to be some adaptation and for this reason sail tankers are also used instead of the traditional route through the Suez Canal. This, of course makes the voyage a longer trip ranging from 1-5 weeks longer than usual.

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600,000 tonne tankers adopt this way. It is also expected that there will be an increase in the price of jet fuel. Since January 2015 some prices in certain areas have already slightly increased but then again have been discounted in other areas.

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The increasing demand makes it highly likely that the jet fuel prices will increase yet at the same time it will not increase massively nor will it shoot up due to its demand. There are many factors that contribute to the expected growth of the jet fuel market. One of these factors is the large geographical population of certain countries means there will be a higher passenger demand for travel and all types of flights. This in turn will increase jet fuel demand and mainly china, India and Indonesia are highly likely to expand the market. Over a 1 or 2 year period customers will most probably have jet fuel prices lowered for them making the trade even more attractive to buyers.

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