Diesel refining margins drop amid weak demand
Northwest European diesel barge refining margins dropped by over $1 to $18.30 a barrel on Tuesday amid signs of weak demand in the market.
Four diesel barges traded in the Platts window, compared with one in the previous session, with BP selling to Phillips66 and Mabanaft.
European diesel markets are looking bearish until September when refinery maintenance season kicks in, Sparta Commodities analyst James Noel-Beswick said.
EU and UK diesel and gasoil imports stood at about 1.04 million barrels per day in June, nearly 20% below May levels, Kpler data showed. July import levels have reached 856,000 bpd so far.
Russia has sent ultra-low sulphur diesel from its ports for storage in the regional hub of Singapore and in West Africa, traders and shipping data show, as ample supply has slowed demand.
According to shipping data from Vortexa and Kpler, the Aether loaded about 100,000 metric tons of diesel in May in the Russian Baltic port of Primorsk and reached Singapore last week, where it is discharging at the Universal terminal.
Two other vessels - the Advantage Portofino and the Minerva Aries - were loaded in June in the Baltic ports of Primorsk and Saint Petersburg with 167,000-169,000 tons of diesel in total. They are heading to Singapore or Malaysia.
Trades | Bids | Offers | Previous Session | Seller | Buyer | |
|---|---|---|---|---|---|---|
0.1 GO Barge diffs fob ARA per tonne (GO-ED-ARA) | Aug -$18 (one barge) | |||||
0.1 GO Cargo diffs cif NWE per tonne (GO-CND-NWE) | ||||||
0.1 GO Cargo diffs cif Med per tonne (GO-CND-MED) | Aug -$8.50 | Aug -$1 | ||||
50ppm barge diffs fob ARA per tonne (GO50PPM-ED-ARA) | Aug -$6 (one barge) | |||||
Diesel | Trades | Bids | Offers | Previous Session | Seller | Buyer |
Diesel barge diffs fob ARA per tonne (ULSD10-BD-ARA) | Aug $1-$2 | Aug +$2.50 (one barge) | BP | P66, Mabanaft | ||
Diesel cargo diffs cif NWE per tonne (ULSD10-ANYD-NWE) | Aug $10 (Thames) | Aug +$15 | Gunvor | Glencore | ||
Diesel cargo diffs cif Med per tonne (DL-CIFD-MED) | ||||||
Jet fuel | Trades | Bids | Offers | Previous Session | Seller | Buyer |
Jet fuel barge diffs fob FARAG per tonne (JET-BD-ARA) | Aug +$49.5 | |||||
Jet fuel cargo cif NEW per tonne (JET-CD-NWE) | Aug +$55 | Aug +$51.25 (Le Havre) |
Fuel Oil | Trades | Bids | Offers | Previous Session | Seller | Buyer |
0.5% barge fob ARA per tonne | $552-$554 | $560.5-$561 (6 barges) | Glencore | BP, Trafigura | ||
3.5% barge fob ARA per tonne (HFO-ARA) | $480-$487.50 | $491-$492 (4 barges) | Gunvor, Mercuria, Aramco | Total, Mercuria, Peninsula, United |
ICE Low Sulphur Gasoil | (LGOc1) | Previous |
Diesel ARA Barge Cracks vs Brent futures (per barrel) | $18.3 | $19.49 |
Diesel spread | (LGOc1-LGOc2) |
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