Post Volcanic Ash Syndrome

As market dynamics unleashed along with columns of smoke and ash from the Eyjafjallajokull volcano continue to work their way through the international economy, the full effect of the week’s events has yet to fully reveal itself. It is already clear that the cessation of airplane traffic across Europe sharply reduced demand for jet fuel in the region, with consequences that filtered through crude oil and refined product markets this week. The tanker market impact of the transportation chaos, however, will become clearer only in the days to come, as refiners, traders, charterers and owners continue to digest this week’s developments. Download here