Europe Distillates-Margins End Week Lower on Stronger Import Forecasts


Northwest European diesel margins ended the week lower at around $28.50 a barrel as imports into the region were set to rise.

Over 28 metric tons of diesel traded in the afternoon window at premiums of $23 to $25 a ton to the December ICE Low Sulphur Gasoil futures for prompt supply.

Europe’s jet fuel/kerosene demand climbed above its seven-year range in November and remains 100,000 bpd on average higher than in 2022, analytics firm Vortexa said in a note.

ARA gasoil stocks were down 5.5% to 1.74 million tons in the week to Thursday as imports from the Middle East slowed, Dutch consultancy Insights Global said.

Demand up the Rhine was strong, as cold weather led to restocking of heating oil, it added.

U.S. distillate stockpiles, which include diesel and heating oil, rose last week by 5.2 million barrels to 110.8 million barrels, versus expectations for a 394,000-barrel drop, EIA data showed.

Diesel imports into Europe were set to rise in November from the previous month, buoyed by larger flows from Asia and the Middle East as refiners end maintenance, LSEG analyst Raj Rajendran said.

Diesel shipments set to arrive in Europe in November were last estimated at 4.99 million tons, compared with 4.5 million tons in October, and compared with 5.73 million tons in September, LSEG data shows.

Source : Hellenicshippingnews