Oil prices running out of steam on European flights chaos?

Global markets opened lower on Monday as concerns that the current European flight chaos caused by Iceland volcano Eyjafjallajökull may send oil prices tumbling. The European air travel chaos caused by a huge ash cloud from an Icelandic volcano could cut jet fuel demand by nearly 2 million barrels, analysts and traders said last Friday. “Some demand will simply disappear and those who need to fly will eventually fly, but there will definitely be some flights that just do not take place,” said David Wech, oil analyst at consultancy JBC Energy. JBC Energy’s forecasting model for oil demand sees European jet fuel consumption at an average of 1.17 million barrels a day in 2010. Assuming that an estimated 80 percent of Europe’s airports are shut for 48 hours, the disruption will snuff out around 1.87 million barrels of demand. The declaration of a no-fly zone in Europe could slow the drawdown of jet fuel inventories, traders said. At least 7 million barrels of an estimated 56 million barrels of oil products held in floating storage is thought to be jet fuel, according to ship broker ICAP. Jet stocks in independent tanks in Europe are also brimming. Crude oil prices gain as traders eye global stock markets US Light oil prices fall under $82 on Goldman Sachs news Brent oil opens trading under $85, europe volcano continues Oil prices add over two percent in brisk buying session OPEC would consider raising output if oil prices hit $95 mark Oil prices start week trading around $85 on weak US dollar Oil prices trading back around $85, Greece debts hit markets Light oil price touches $87 in trading, $100 oil soon? Light oil price trading up as US dollar takes a knock Crude oil prices hit 2010 trading high on falling US dollar Oil prices trading up 3 percent on a falling US dollar Oil prices trading higher on Monday amid weaker US dollar Oil prices trading range at $80 mark on US Dollar Index Oil prices trading negative on profit taking, stock markets Oil prices trading down two percent on stronger US dollar Oil prices trading steady, eyes on US dollar index Oil prices trading near 2010 highs as OPEC holds output Crude oil prices trading lower on stronger US dollar Oil prices start week trading lower amid demand concerns Goldman Sachs predicts summer oil price at $92 – $97 range

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Oil prices running out of steam on European flights chaos?