USGC middle distillate exports to Europe in Feb at 110,000 mt: cflow
US Gulf Coast middle distillate shipments set to land in Europe in February amount to 110,000 mt so far, all in Northwest Europe, according to Platts cFlow, trade flow software, on Jan. 26.
A total of around 400,000 mt of USGC middle distillates were due to arrive in Europe in January, including 370,000 mt in NEW and only 30,000 mt in the Mediterranean, cFlow also showed.
In the past seven days, only one clean tanker left the USGC to bring oil to Europe: the dwt49,999 BW Wren, which is only part-laden and headed to NWE, according to cFlow. Kpler data showed this vessel as carrying clean product.
Meanwhile, around 220,000 mt of European-origin ULSD were set to arrive on the US Atlantic Coast in January, down from a record 730,000 mt in December, with around 60,000 mt loaded on the route so far for arrival in February in New York , Platts cFlow data showed.
Fundamentals in the European ULSD market have been weak as a result of coronavirus mobility restrictions and length in the market, putting pressure on premiums throughout January.
CIF NWE cargoes were assessed at a $1.50/mt premium to front month ICE LSGO futures Jan. 26, down from a $2/mt premium the previous day, while very prompt cargoes were heard to be offered slightly lower, according to a Northwest Europe-based trader Jan. 26.
“There is too much product in Europe,” the trader said, adding that he doesn’t see much further downside to prices however, as the current levels should cause refiners to lower production rates or stop production, and the demand from the US Atlantic Coast is helping to clear some length.
The Mediterranean market is suffering a similar fate, with CIF Med cargoes hitting a 10-week low at $2/mt over ICE LSGO futures Jan. 21, before rallying to $5.50/mt Jan. 25.
Sources in the region have said that “diesel is weak and cheap,” and the market long however, with lots of cargoes struggling to find homes.
USGC MIDDLE DISTILLATE SHIPMENTS (‘000 mt):