Europe Distillates-Margins end week higher, buying activity slow

Northwest European diesel margins ended the week some 10% higher at $33 a barrel on Friday after sharp declines in crude prices, while demand in the region remained weak.

Only one diesel barge traded in afternoon trading, with Exxon selling to Mabanaft.

Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by 9.6% in the week to Thursday, data from Dutch consultancy Insights Global showed.

Gasoil stocks stood at 1.85 million metric tons, rising on higher imports and even though demand from inland locations along the Rhine remained strong, said Lars van Wageningen of Insights Global

U.S. distillate stockpiles, which include diesel and heating oil, fell last week by 1.02 million barrels to 105.6 million barrels, the lowest since May 2022, EIA data showed. Analysts had expected a 761,000 barrel drop.

Diesel shipments set to arrive in Europe this month were last estimated at 4.98 million tons, up from the revised 4.62 million tons which discharged in October, and compared with 5.78 million tons in September, LSEG data shows.

“Despite stuttering industrial activities, seasonal winter needs for heating oil and refinery issues, particularly in Germany, have ensured that demand is robust, thereby keeping cracks stable at a higher level,” LSEG analyst Raj Rajendran said.
Source: Reuters (Reporting by Ron Bousso; Editing by Alexander Smith)