CORRECTED-Europe Distillates-Cracks up at $16.5/bbl after lower U.S. stocks

  • Reuters
  • Commodities News
CORRECTED-Europe Distillates-Cracks up at $16.5/bbl after lower U.S. stocks

(Corrects to swap 0.1 NWE cargo entry with 50 ppm barge entry)

LONDON, Sept 5 (Reuters) - Benchmark northwest European diesel refining margins rose around 2% to about $16.5 a barrel on Thursday after data showed falling U.S. stockpiles.

* U.S. distillate stockpiles USOILD=ECI , which include diesel and heating oil , fell by 2.5 million barrels, versus expectations for a 484,000-barrel increase, EIA data showed. EIA/S

* Gasoil stocks in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub STK-GO-ARA ticked up slightly from a week ago to 2.9 million tonnes, data from Dutch consultancy Insights Global showed. Lower than usual exports from Russia and the U.S. Gulf Coast into Europe and upcoming seasonal refinery maintenance in the region, which is set to peak at 1.5 million barrels per day (bpd) in September, have boosted prices in recent days, traders said.

* Asian imports into Europe were expected to stay strong in September at around 1.9 million tonnes, slightly below August's 2 million tonnes, according to traders.

* More Asian gasoil is expected to head to Europe as buyers take advantage of the biggest seasonal price gap between the two regions in at least seven years, traders and ship brokers said. The trading arm of Nigeria's state oil firm is leaving London to set up in Dubai to be closer to the Asian market which is fast becoming the main buyer of the west African country's crude, four oil industry sources said. The chief executive of the world's biggest oil trader, Vitol, told Reuters he expects a weaker oil price in the short term but does not see sustained levels below $50 a barrel.

* He expects there to be sufficient supplies of cleaner fuels at major hubs when the switch to lower sulphur marine fuel comes into effect in January but a tighter market later that year. The change in marine fuel standards has yet to affect refining margins, which might drop in the fourth quarter on weaker demand, BP (LON: BP ) Chief Financial Officer Brian Gilvary told Reuters. Bids

Offers Previous Seller Buyer

Session

0.1 GO

Sept

Barge

-$10

diffs fob

ARA per

tonne

>

0.1 GO

Cargo

diffs cif

NWE per

tonne

E>

0.1 GO

Oct -$1

Cargo

diffs cif

Med per

tonne

D>

50ppm

Oct -$3

Belgo Vitol barge

mine

diffs fob

ARA per

tonne

D-ARA>

Diesel

Trades Bids

Offers Previous Seller Buyer

Session

Diesel

Sept

Sept

Belgom Shell (LON: RDSa ), barge

-$0.5

-$0.50-f ine,

Vitol, diffs fob to

lat

Mabana BP ARA

-$0.25

(summer) ft

Per tonne

-ARA>

Diesel

2

Sept

Sept +$4 Mabana BP, cargo

cargoes +$3.5

(Amsterd ft

Mercuri diffs cif (Amster to +$5

am)

a NWE

dam)

(Hambur

Per tonne

g)

YD-NWE>

Diesel

Oct

Oct

cargo

+$4.5

+$5.5

diffs cif

(Koper) (Laver

Med

, Sept a)

per tonne

+$5.75

ED>

Jet fuel

Trades Bids

Offers Previous Sell

Buy

Session

Jet fuel

Oct

Sept

KLM

BP barge

+$39

+$38.50

diffs fob

FARAG

per tonne

A>

Jet fuel

3

Total Unipec cargo

cargoes

cif NWE

(Rotter

per tonne dam)

E>

Fuel Oil

Trades

Previous Sell

Buy

Session

3.5 pct

$298-$3

Litasc Shell barge

06

$277.5-$2 o

fob ARA per (26KT)

82.5

tonne

(56kt)

HFO-ARA

ICE (NYSE: ICE ) Low Sulphur Gasoil LGOc1 Diesel crack

LGOc1-LCOc1 Diesel spread

LGOc1-LGOc2

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