off-the-wire

Europe Distillates-Diesel cracks rise but high imports limit gains

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, Feb 7 (Reuters) - Northwest European diesel barge profit margins edged higher to around $29.75 a barrel on Tuesday, but remained close to lows not seen since August 2022 on high European import and stock levels.


* The impact of the EU ban on Russian refined product imports as well as a price cap for Russian diesel are still emerging.
* Refinitiv data, however, already show northwest Europe is no longer a major destination for Russian diesel this month, with half of its Feb. 1-8 loadings bound for Turkey.
* Ship-to-ship destinations such as Kalamata, Gibraltar and Ceuta are also appearing for Russian diesel exports.
* But diesel flows into Europe remain high.


* Around 4.77 million tonnes of diesel is already scheduled to arrive into Europe this month, compared with a total 7.73 million tonnes in January, according to Refinitiv analysis.


* The Group of Seven rich nations, the European Union and Australia set price caps for Russian diesel and other refined petroleum products on Friday, while the EU ban on Russian refined oil product imports took effect on Sunday.
* Intercontinental Exchange on Tuesday announced its first delivery of low sulphur gasoil futures since Russian oil was excluded from the contract at the end of 2022, with a total of 69,800 tons entering the deliver process.
* 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 Mar
Barge -$22
diffs fob
ARA per
tonne 0.1 GO
Cargo
diffs cif
NWE per
tonne
<GO-CND-NWE
>
0.1 GO
Cargo
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 Finco, barge -$3.50 -$4-$ -$3.50 -$3.50 Vitol diffs fob 5 -$0
ARA
Per tonne
<ULSD10-BD-
ARA>
Diesel Feb Feb Feb Feb BP Vitol cargo +$11.5 +$9-$ +$6-$1 +$8.75
diffs cif 0 11.50 0, Mar
NWE +$15
Per tonne
<ULSD10-ANY
D-NWE>
Diesel Mar
cargo +$3
diffs cif
Med
per tonne
<DL-CIFD-ME
D>



Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel FBH Feb +$67 Total Vitol barge +$8
diffs fob
FARAG
per tonne
<JET-BD-ARA
>
Jet fuel Mar
cargo +$71
cif NEW per
tonne
<JET-CD-NWE
>
Fuel Oil Trades Bids Offers Previous Sell Buy Session
0.5% barge $548-$54 $531-$53 Trafig Shell, fob ARA per 9 8 ura Mercur tonne ia 3.5% barge $370-$37 $360-$35 Gunvor BP, fob ARA per 1 4 , Penins tonne Aramco ula, Vitol ICE Low Sulphur Gasoil Previous Diesel ARA Barge $29.76 $26.04 Crack(per barrel)
Diesel spread (Reporting by Rowena Edwards; Editing by Shailesh Kuber)

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