off-the-wire

Europe Distillates-Diesel margins edged higher as US inventories fall

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, May 3 (Reuters) - Benchmark Northwest European diesel barge refining margins edged higher to around $12.70 a barrel on Wednesday as U.S. inventories fell, but margins remained close to lows not seen since December 2021 as high imports weighed.
* U.S. distillate stockpiles , which include diesel and heating oil, fell by 1.2 million barrels to 110.3 million barrels, the Energy Information Administration said on Wednesday.
* This compared with expectations for a 1.1 million-barrel drop.
* Russian exports of ultra low-sulphur diesel (ULSD) from the Baltic Sea port of Primorsk are set to fall by 29.5% month on month on a daily basis in May to 1.18 million tonnes, from 1.62 million tonnes scheduled for April, two traders said on Tuesday.
* However, Russian oil product exports from the Black Sea port of Tuapse in May are set to rise by 5.1% month on month on a daily basis to 1.446 million tonnes, versus 1.331 million tonnes scheduled for April, two traders said on Tuesday.
* High imports into Europe have been weighing on diesel margins globally.


* Global diesel exports to Europe are expected to soar to 7.37 million tonnes in April, according to Refinitiv tracking, the highest since January.
* This week, Refinitiv is tracking 2.41 million tonnes of seaborne diesel exports to Europe, excluding intra-regional flows.
* This compares with 2.3 mln tonnes scheduled a week ago, which fell to 1.47 mln after delays, changes of orders and missing Russian barrels, and of which 210,000 tonnes has yet to be fully discharged, according to Refinitiv.
* Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area dropped by 5% in the week to Friday, data from Dutch consultancy Insights Global. 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 0.1 GO Cargo May
diffs cif Med -$12
per tonne 50ppm barge May Vitol Mabana diffs fob ARA +$2.50 ft per tonne
<GO50PPM-ED-A
RA>



Diesel Trades Bids Offers Previous Seller Buyer Session
Diesel barge May May May May flat Shell Trafig diffs fob ARA +$0.25- -$1.5 +$2-$3 to ura, Per tonne $0.50 to -$0.25 Vitol <ULSD10-BD-AR +$0.5
A>
Diesel cargo May
diffs cif NWE +$9.50-
Per tonne $10
<ULSD10-ANYD-
NWE>
Diesel cargo June
diffs cif Med +$7.50
per tonne Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel
barge
diffs fob
FARAG
per tonne Jet fuel
cargo
cif NEW per
tonne Fuel Oil Trades Bids Offers Previous Sell Buy Session
0.5% barge $470.5-$4 $499-$50 Trafig Shell fob ARA per 75 1 ura, , BP tonne Glenco


re
3.5% barge $387-$388 $407-$41 Gunvor OEI, fob ARA per 0 , Totsa tonne Shell ICE Low Sulphur Gasoil Previous Diesel ARA Barge $12.72 $12.39 Crack(per barrel)
Diesel spread (Reporting by Rowena Edwards;Editing by Elaine Hardcastle)

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