off-the-wire

Europe Distillates-Cracks steady as supply remains ample

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, March 3 (Reuters) - Northwest European diesel barge profits remained flat on Friday at around $30 a barrel as ample supply continued to hamper gains.
* Diesel cracks have risen slightly in recent days but stayed close to the February average of $27.60/bbl, their lowest monthly average for a year.
* Following an EU embargo on Russian oil products, which came into effect on Feb. 5, European countries have been replacing Russian diesel supplies with increased imports from India, Saudi Arabia, China, Kuwait and Malaysia, among other locations.


* Russia used to be the main diesel supplier for Europe, accounting for roughly 60% of the continent's needs.
* "Everyone stocked up pre-ban and it seems the demand hasn't quite come back yet," one trader said.
* Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area fell slightly after 4-weeks of gains, data from Dutch consultancy Insights Global showed on Thursday.
* Tunisia imported record volumes of Russian gasoil and diesel last month as Moscow was forced to find new customers for its oil products, according to traders and tracking data.
* According to Refinitiv tracking data, Russian and Baltic diesel flows to Europe fell to a record low of 1.77 million tonnes in February.


* Almost half of these volumes were heading to Turkey while the rest are mostly bound to locations where ship-to-ship transfers take place.
* Russian oil producer Lukoil has started ship-to-ship (STS) loadings of ultra-low-sulphur diesel (ULSD) off its western exclave of Kaliningrad, according to traders and Refinitiv data. 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 Apr
Cargo +$1
diffs cif (Laver
Med per a)
tonne
<GO-CND-MED
>
50ppm barge
diffs fob
ARA per
tonne
<GO50PPM-ED
-ARA>



Diesel Trades Bids Offers Previous Seller Buyer Session
Diesel Mar Mar -$2 Mar March Gunvor, BP, barge flat to -$1 flat flat Shell Totsa diffs fob to to (21.60
ARA -$0.50 -$0.50 KT)
Per tonne (19KT)
<ULSD10-BD-
ARA>
Diesel
cargo
diffs cif
NWE
Per tonne
<ULSD10-ANY
D-NWE>
Diesel Mar Mar Apr Mercuri Totsa cargo +$12 +$10-$1 +$22-$ a
diffs cif 2 23
Med
per tonne
<DL-CIFD-ME
D>



Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel CCM Totsa BP barge +$4.50
diffs fob -$5
FARAG
per tonne
<JET-BD-ARA
>
Jet fuel TQC Apr Aramco BP cargo +$7-$8 +$43
cif NWE per
tonne
<JET-CD-NWE
>
Fuel Oil Trades Bids Offers Previous Sell Buy Session
0.5% barge $556-$56
fob ARA per 5
tonne
3.5% barge $398-$399 $385-$39 Gunvor BP, fob ARA per 5 Penin tonne sula, OEI, Mercu ria ICE Low Sulphur Gasoil Previous Diesel ARA Barge $30.17 $30.13 Crack(per barrel)
Diesel spread (Reporting by Rowena Edwards; Editing by Kirsten Donovan)

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