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Europe Distillates-Diesel margins close week higher

Northwest European diesel barge refining margins rose 4.7% on the week to close at around $17.45 a barrel on Friday.

Six diesel barges traded in the Platts window, up from five in the previous session. Trafigura, Mercuria and Shell sold to Total, Hartree and Vitol.

Margins rose on the week despite higher inventory levels in both the U.S. and Northwest Europe.

Gasoil and diesel stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by over 1.4% during the week to Thursday, data from Dutch consultancy Insights Global showed.

Stocks climbed to 2.26 million tons as demand from inland locations along the Rhine River slipped, Insight Global’s Lars van Wageningen said.

U.S. distillate stockpiles, which include diesel and heating oil, rose last by 3.2 million barrels to 122.5 million barrels, versus expectations for a 2.5-million-barrel rise, EIA data showed.

Diesel arbitrage routes to Europe are largely unworkable, according to Sparta Commodities’ James Noel-Beswick.

Supplies from the Middle East and West Coast of India are instead heading to Asian buyers, while shipments from the U.S. to Europe are also unprofitable currently.

Indonesia’s state-owned energy firm’s Pertamina Patra Niaga has issued its first spot purchase tender for sustainable aviation fuel delivering in August, three sources who received the document said on Friday.

India’s May sales of diesel, mainly used by trucks and commercially run passenger vehicles, rose by 1.8% year-on-year to 8.37 million tons in May.
Source: Reuters (Reporting by Robert Harvey; Editing by Vijay Kishore)

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