Europe Distillates-Diesel margins hold steady

Reuters
14 Nov 2024
Europe Distillates-Diesel margins hold steady

LONDON, Nov 13 (Reuters) - Northwest European diesel barge profit margins were little changed on Wednesday, as analysts expect a rise in U.S. distillate stocks over the last week.

  • Diesel profit margins edged 2 cents lower on the day to about $17.24 a barrel on Wednesday.

  • Margins have recovered in the last month, after touching their lowest of 2024 to date at $12.86 on Oct. 14.

  • "European diesel demand begins to strengthen as winter approaches, supported by stock draws and a widening backwardation. Reduced inflows due to limited arbitrage opportunities are also providing support," said LSEG analyst Rakesh Varma.

  • In the Mediterranean diesel market, AGT sold a 27,000 metric ton diesel cargo to BP with Nov. 25-29 dates at Med cargoes +$2.00 CIF Koper.

  • On Tuesday, Greece's Hellenic was heard to be offering a ULSD cargo through a tender for 20-27 November loading.

  • Petroineos withdrew an offer for a 0.1% gasoil cargo with Dec. 3-7 dates at Ice December low-sulphur gasoil futures plus $5.00 FOB Barcelona.

  • U.S. crude oil and product stockpiles were expected to have risen last week, an extended Reuters poll showed on Wednesday.

  • Analysts expect distillate inventories USOILD=ECI, which include diesel and heating oil, to have increased by about 200,000 barrels last week.

  • U.S. weekly crude and fuel inventory data from the Energy Information Administration will be released on Thursday, a day later than the usual Wednesday publication, owing to the veterans day holiday earlier this week.

  • Russia's seaborne oil product exports in October fell 7% from a month earlier to 8.861 million metric tons due to seasonal and unplanned maintenance at refineries, data from industry sources and Reuters calculations showed.

  • EU and UK diesel and gasoil imports are on track to reach 1.41 million barrels per day this month, up from 1.26 million bpd in October, Kpler data showed.

Trades

Bids

Offers

Previous Session

Seller

Buyer

0.1 GO Barge

diffs fob ARA per tonne GO-ED-ARA

0.1 GO Cargo

diffs cif NWE per tonne GO-CND-NWE

0.1 GO Cargo

diffs cif Med per tonne GO-CND-MED

Dec +$5

50ppm barge diffs fob ARA per tonne

GO50PPM-ED-ARA

Diesel

Trades

Bids

Offers

Previous Session

Seller

Buyer

Diesel barge

diffs fob ARA

per tonne

ULSD10-BD-ARA

Diesel cargo

diffs cif NWE

per tonne

ULSD10-ANYD-NWE

Dec +$8 (Thames)

Diesel cargo

diffs cif Med

per tonne

DL-CIFD-MED

Med +$2

AGT

BP

Jet fuel

Trades

Bids

Offers

Previous Session

Seller

Buyer

Jet fuel barge

diffs fob FARAG

per tonne

JET-BD-ARA

Jet fuel cargo

cif NWE per tonne

JET-CD-NWE

CCM -$2.50 (IoG)

Fuel Oil

Trades

Bids

Offers

Previous Session

Seller

Buyer

0.5% barge fob ARA per tonne

3.5% barge

fob ARA per tonne HFO-ARA

ICE Low Sulphur Gasoil

LGOc1

Previous

Diesel ARA Barge Cracks vs Brent futures (per barrel)

$17.24

$17.26

Diesel spread

LGOc1-LGOc2

(Reporting by Robert Harvey; Editing by Shinjini Ganguli)

((Robert.Harvey@thomsonreuters.com; +447552256587;))

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