off-the-wire

Europe Distillates-Diesel cracks continue decline as supply concerns ease

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, Feb 6 (Reuters) - Northwest European diesel barge profit margins continued their decline on Monday as supply concerns eased after a European Union ban on Russian fuel imports.


* The Group of Seven rich nations, the European Union and Australia have set price caps for Russian diesel and other refined petroleum products.
* The coalition on Friday said it had set the price caps at $100 per barrel on products that trade at a premium to crude, principally diesel, and $45 per barrel for products that trade at a discount, such as fuel oil and naphtha.
* The price caps are designed to keep markets supplied while limiting Moscow's revenues after an EU ban on imports of Russian refined oil products, including diesel and jet fuel, which took effect on Sunday.
* The market is keeping a watchful eye on the impact of a major earthquake that struck Turkey and Syria early on Monday, which has halted Azeri crude exports from the Turkish port of Ceyhan to international markets on Feb. 6-8.


* Iraq has also halted crude flows through its northern export pipeline to Ceyhan.
* Turkey's STAR refinery, controlled by Azerbaijan's SOCAR company, was running normally without damage, according to industry sources.
* Some cargo areas in the Limak port at Turkey's Iskenderun hub were still on fire on Monday, with operations stopped, according to a local shipping agent.


* There are several product terminals at Iskenderun, one trading source said.


* But Europe has been stocking up on diesel supplies ahead of the EU ban, with gasoil stocks in the region reaching a 19-month high last week.


* Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose by 6% to their highest since July 2021, data from Dutch consultancy Insights Global showed on Thursday. Trades Bids Offers Previous Seller Buyer Session
0.1 GO
Barge
diffs fob
ARA per
tonne 0.1 GO
Cargo
diffs cif
NWE per
tonne
<GO-CND-NWE
>
0.1 GO Feb
Cargo -$16
diffs cif
Med per
tonne
<GO-CND-MED
>
50ppm barge
diffs fob
ARA per
tonne
<GO50PPM-ED
-ARA>



Diesel Trades Bids Offers Previous Seller Buyer Session
Diesel Feb Feb Feb Feb Shell Vitol barge -$3.50 -$4.5 -$3.50 -$1.50-$
diffs fob 0-$5 to Feb 2
ARA +$1
Per tonne
<ULSD10-BD-
ARA>
Diesel Feb Feb Feb Feb +$9 Shell Trafig cargo +$8.75 +$8.7 +$8.25 (Hamburg ura diffs cif 5 -$10.2 )
NWE 5, Mar
Per tonne +$11-$
<ULSD10-ANY 17
D-NWE>
Diesel Mar
cargo +$2
diffs cif
Med
per tonne
<DL-CIFD-ME
D>



Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel Feb Feb BP Unipec barge +$67 +$67
diffs fob
FARAG
per tonne
<JET-BD-ARA
>
Jet fuel Mar
cargo +$70
cif NEW per
tonne
<JET-CD-NWE
>
Fuel Oil Trades Bids Offers Previous Sell Buy Session
0.5% barge $531-$53 $543-$54 TotalE Penins fob ARA per 8 5 nergie ula, tonne s, Shell, Trafig Mercur ura ia 3.5% barge $360-$35 $357-$36 OEI, Penins fob ARA per 4 1 Gunvor ula, tonne , Vitol, TotalE BP, nergie Maersk s
ICE Low Sulphur Gasoil Previous Diesel ARA Barge $25.93 $29 Crack(per barrel)
Diesel spread (Reporting by Rowena Edwards)

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