Europe Distillates-Diesel cracks hit six-month low as supply fears ease

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, Feb 17 (Reuters) - Northwest European diesel barge profit margins fell to their lowest since early August, at $24.80 a barrel, on Friday as fears of supply shortages after sanctions on Russia continued to ease.


* Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area hit a new two-year high in the week to Thursday, data from Dutch consultancy Insights Global showed.
* Gasoil stocks, which include diesel and heating oil, are at their highest since March 2021 on the back of ample imports, including from East Asia and India, said Insights Global's Lars van Wageningen.
* Diesel supplies and imports into Europe remained high even after the EU ban on Russian fuel imports took effect.
* Kazakhstan will supply 100,000 tonnes of oil via Russia's Druzhba pipeline to Germany in March for the PCK Schwedt refinery after it agreed commercial and legal terms with all parties involved, two sources familiar with the talks said.
* China's commerce ministry has met independent oil refiners to discuss their deals with Russia, five sources with knowledge of the matter said, imports which have saved Chinese buyers billions of dollars.
* About 5.5 million tonnes of diesel is already scheduled to arrive into Europe this month, compared with 7.73 million tonnes in January, Refinitiv analysis shows.


* The February imports are still 12% higher than a year earlier, according to Refinitiv.
* Russian diesel exports took a massive hit in the week to Feb. 12, tumbling to about 550,000 tonnes compared with the 1.23 million tonnes that loaded in the week to Feb. 5, Refinitiv data shows.


* Shell's 400,000 barrel per day Pernis refinery in Rotterdam will undergo major maintenance from the start of March through to the end of May, the company said on Tuesday. 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 Mar
Cargo -$1
diffs cif
Med per
tonne
<GO-CND-MED
>
50ppm barge Mar
diffs fob -$5
ARA per
tonne
<GO50PPM-ED
-ARA>



Diesel Trades Bids Offers Previous Seller Buyer Session
Diesel Mar Mar
barge -$4.5 -$0 to
diffs fob 0 to -$3.50
ARA -$7
Per tonne
<ULSD10-BD-
ARA>
Diesel TQC Mar Mar BP, Vitol, cargo +$1.50 +$9.5 +$16-$ Total Trafig diffs cif , $11 0-$10 17 ura NWE
Per tonne
<ULSD10-ANY
D-NWE>
Diesel Mar
cargo +$0
diffs cif
Med
per tonne
<DL-CIFD-ME
D>



Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel Mar
barge +$43
diffs fob
FARAG
per tonne
<JET-BD-ARA
>
Jet fuel Mar Mar
cargo +$44- +$55-$
cif NEW per $50 57
tonne
<JET-CD-NWE
>
Fuel Oil Trades Bids Offers Previous Sell Buy Session
0.5% barge $538-$54 Trafig Vitol, fob ARA per 0 ura, Glenco tonne Mercur re ia
3.5% barge $379 Gunvor Penins fob ARA per ula, tonne Norths tar, OEI ICE Low Sulphur Gasoil Previous Diesel ARA Barge $24.81 $25.25 Crack(per barrel)
Diesel spread (Reporting by Rowena Edwards; Editing by Kirsten Donovan)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.