Europe Distillates-Diesel cracks drop on strong supply outlook

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, Feb 1 (Reuters) - Northwest European diesel barge profit margins dropped sharply to $34 a barrel on Wednesday after data showed a surprise rise in U.S. inventories and large imports into Europe.


* U.S. distillate stockpiles, which include diesel and heating oil, rose last week by 2.3 million barrels in the week to 117.6 million barrels, compared with expectations for a 1.3 million-barrel drop, EIA data showed.
* European diesel imports are expected to total 8.36 million tonnes in January, slightly lower than December's 8.38 million tonnes, according to Refinitiv ship tracking data.
* European diesel imports from Russia rose to nearly 4 million tonnes as traders rushed to fill tanks ahead of a Feb. 5 EU ban on Russian fuel, according to Refinitiv.
* EU imports of Russian residual fuel spiked to a six-month high of about 210,000 barrels per day (bpd) in January, ahead of the Feb. 5 ban, data from oil analytics firm Vortexa showed.
* Russian diesel shipments to North and West Africa increased in January to a new record high of 866,000 tonnes as traders seek new alternative markets to Europe. Trades Bids Offers Previous Seller Buyer Session
0.1 GO
Barge
diffs fob
ARA per
tonne 0.1 GO
Cargo
diffs cif
NEW per
tonne
<GO-CND-NWE
>
0.1 GO
Cargo
diffs cif
Med per
tonne
<GO-CND-MED
>
50ppm barge Feb -$19
diffs fob
ARA per
tonne
<GO50PPM-ED
-ARA>



Diesel Trades Bids Offers Previous Seller Buyer Session
Diesel Feb Feb Feb flat
barge -$1- +$1.50 - Feb
diffs fob Feb -$3 +$0.50
ARA +$0.5
Per tonne 0
<ULSD10-BD-
ARA>
Diesel Feb Feb
cargo +$6 +$7.25
diffs cif (Hamb -$10
NEW urg) (Amste
Per tonne rdam)
<ULSD10-ANY
D-NWE>
Diesel
cargo
diffs cif
Med
per tonne
<DL-CIFD-ME
D>



Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel CCM CCM +$30
barge +$26
diffs fob
FARAG
per tonne
<JET-BD-ARA
>
Jet fuel TQC Feb Mar
cargo $16, +$93 +$111
cif NEW per TQC
tonne $22
<JET-CD-NWE
>
Fuel Oil Trades Bids Offers Previous Sell Buy Session
0.5% barge $578-$59 $588-$59 Shell OEI fob ARA per 0 2
tonne
3.5% barge $377-$38 $385-$39 Gunvor BP fob ARA per 5 0
tonne ICE Low Sulphur Gasoil Previous Diesel ARA Barge $37.3 $40.2 Crack(per barrel)
Diesel spread (Reporting by Ron Bousso; editing by Devika Syamnath)

email: ron.bousso@thomsonreuters.com Twitter: Tel.: +44 (0)207 542 2161 Reuters Messaging: ron.bousso.reuters.com@reuters.net))
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