Europe Distillates-Diesel margins edge higher

Northwest European diesel barge profit margins edged higher to about $18 a barrel on Friday as underlying crude prices softened, but a rise in regional stocks limited further gains.

Gasoil stocks independently held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by over 18% in the week to Nov. 14 to their highest in six weeks, data from Dutch consultancy Insights Global showed.

Stocks stood at 2.42 million metric tons, rising as large cargoes from the Middle East discharged in the region, Insight Global’s Lars van Wageningen said. He added that demand for heating oil from inland locations was robust.

Lower prices helped to drive higher-than-expected OECD gasoil use in the third quarter, driving up overall oil demand, but weak manufacturing and sluggish growth are likely to cap future consumption, the International Energy Agency (IEA) said on Thursday.

Higher diesel sales contributed to a small, 60,000 barrels per day upward revision in the IEA’s 2024 global oil demand growth forecast, the agency said in a monthly report, as lower prices led to stock building ahead of the peak winter season.

EU and UK diesel and gasoil imports are on track to reach 1.08 million bpd this month, down from 1.26 million bpd in October, Kpler data showed.
Source: Reuters (Reporting by Ahmad Ghaddar; Editing by Krishna Chandra Eluri)