Europe Distillates-Diesel diffs rise to highest since October 2022
Northwest European diesel barge differentials rose to $40 a tonne on Thursday, their highest since October 2022, after data showed a drop in regional stocks.
Diesel barge margins slightly declined amid a sharp sell-off in crude markets. O/R
ARA gasoil stocks fell in the week to Thursday by 2.3% to 1.68 million tons – their lowest since October 2022 – as demand in markets up the river Rhine remained strong, data from Dutch consultancy Insights Global showed.
U.S. distillate stockpiles, which include diesel and heating oil, fell by 1.4 million barrels last week to 111.3 million barrels, Energy Information Administration data showed.
Diesel flows into Europe in November so far are growing but not at the robust pace seen this time last year as weaker industrial activities curbed demand, which actually allowed inventories to build despite the reduced imports going into winter, LSEG analyst Raj Rajendran said.
Global deliveries scheduled for this month were last estimated at 4.47 million tons, down slightly from the 4.69 million tons that was discharged in October which was the least since May 2022, he added. The sharp drop in imports, totalling over 1.3 million tons less than September, failed to dent EU inventories.
Source: Reuters (Reporting by Ron Bousso)