Europe Distillates-Diesel cracks end week lower

Northwest European diesel barge refining margins ended the week 2.6% lower at $33 a barrel following strong gains in crude prices and as regional stocks rose.

Shell bought from BP three diesel barges in the afternoon trading window at a premium of $11 a tonne to the November ICE diesel contract.

Higher water levels along the Rhine river in recent days have led to lower demand for barges as vessels are able to load at higher capacity, brokers Riverlake Barging said.

A technical issue at an Antwerp terminal has led to one-day delays in barge loadings, they added.

Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose slightly from 2023 lows in the week to Thursday, data from Dutch consultancy Insights Global showed.

Gasoil stocks rose from recent lows on the back of imports from China, which are expected to rise to address shortages in the region, said Insights Global’s Rick Veringmeier.

U.S. distillate stockpiles, which include diesel and heating oil, fell by 3.2 million barrels last week to 113.8 million barrels, versus expectations in a Reuters poll for a 1.4 million-barrel drop, the EIA data showed.

Global diesel imports into Europe so far this month were pegged at 3.76 million metric tons, which is down heavily from 5.78 million tons last month, Refinitiv tracking shows.

U.S. oil refiners have cranked up output of diesel, heating oil and jet fuel for winter but are struggling to turn a profit because gasoline margins have fallen over 80% since the summer driving season ended.
Source: Reuters (Reporting by Ron Bousso; Editing by Devika Syamnath)