Europe Distillates-Diesel cracks end week near $40 a barrel
Northwest European diesel barge refining margins ended the week largely flat at $40 a barrel amid tight supplies and after regional stocks declined.
Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub declined by 1% in the week to Thursday, data from Dutch consultancy Insights Global showed.
Gasoil demand down the Rhine river remained very low due to strong prompt prices, said Insights Global’s Lars van Wageningen.
U.S. distillate stockpiles, which include diesel and heating oil, rose last week by 3.9 million barrels to 122.5 million barrels, according to EIA data, and triple the forecast for a 1.3 million-barrel build.
Diesel imports into Europe are gathering pace after the sharp rise in refining margins in recent weeks opened arbitrage opportunities, LSEG analyst Raj Rajendran said.
Global shipments into the region were set to reach around 4.45 million tons so far in September, compared with a total of 5.1 million tons last month, Rajendran said.
Imports from Asia and the Middle East rose to 2.95 million tons so far in September, compared with a total of 2.41 million tons a month earlier.
China’s oil refinery throughput in August rose to a record, data showed on Friday, as processors in the world’s second-largest crude consumer kept run rates high to meet summer travel demand and capitalise on strengthening export margins.
Source: Reuters (Reporting by Ron Bousso; Editing by David Evans)