off-the-wire

Europe Distillates-Diesel barge margins continue to rise

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, May 9 (Reuters) - Benchmark Northwest European diesel barge refining margins continued their upwards trend, rising by close to $1 per barrel from Friday to over $16 a barrel on Tuesday, recovering from 16-month lows seen at the end of April.
* Diesel margins have risen as the East to West gasoil arbitrage has been unworkable since the last week of April, according to shipbroker BRS Group.
* This comes as a result of a contango on the Ice gasoil curve , indicating ample prompt supply.


* Prompt prices are lower than those in future months in a contango market, encouraging traders to sell oil later at higher prices.
* "Preliminary data suggest that over the past three weeks, middle distillates exports from East of Suez to West of Suez ... have been down by more than 35% compared to the first three weeks of April," BRS said in a note on Monday.
* This week, Refinitiv is tracking global seaborne diesel exports to Europe, excluding intra-regional flows, of 2.33 million tonnes, of which 1.03 million t are from Russia.
* This compares with 2.41 mln t scheduled a week ago, which fell to 2.04 mln t after delays, changes of orders, and missing Russian cargoes. Of this, 110,000 t has yet to be fully discharged, according to Refinitiv.
* Gasoil and diesel stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area rose by 5% to a two-year high in the week to Thursday, data from Dutch consultancy Insights Global showed. Stocks stood at 2.36 million tonnes and were at their highest since April 2021.
* Separately, European refiners' crude intake in April rose by 3.5% from a year earlier to 9.82 million barrels per day (bpd) as plants increased output after a ban on Russian fuel imports, Euroilstock data showed on Tuesday.
* European middle distillate stocks stood at 379 million barrels in April, up 0.5% from March, and 1.9% from a year earlier, the data showed. 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 0.1 GO Cargo
diffs cif Med
per tonne 50ppm barge May Unipec Mabana diffs fob ARA +$1.50 ft per tonne
<GO50PPM-ED-A
RA>



Diesel Trades Bids Offers Previous Seller Buyer Session
Diesel barge May
diffs fob ARA +$0.50
Per tonne
<ULSD10-BD-AR
A>
Diesel cargo May
diffs cif NWE +$8.50,
Per tonne May
<ULSD10-ANYD- +$11.50
NWE>
Diesel cargo
diffs cif Med
per tonne Jet fuel Trades Bids Offers Previous Seller Buyer Session
Jet fuel
barge
diffs fob
FARAG
per tonne Jet fuel JUNE
cargo +$52
cif NEW per
tonne Fuel Oil Trades Bids Offers Previous Sell Buy Session
0.5% barge $488-$491 $486-$48 Trafig OEI, fob ARA per 8 ura BP tonne
3.5% barge $400-$400 $394 Shell, Aramc fob ARA per .50 Mercur o, tonne ia Trafi gura ICE Low Sulphur Gasoil Previous Diesel ARA Barge $16.13 $15.23 Crack(per barrel)
Diesel spread (Reporting by Rowena Edwards; Editing by Shilpi Majumdar)

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