Europe Distillates-Diesel profit margins fall as US flows to ARA set to rise
LONDON, Dec 17 (Reuters) -European diesel refining margins fell on Tuesday to about $18.64 per barrel, amid higher U.S. diesel exports into the Amsterdam-Rotterdam-Antwerp (ARA) hub.
In the Platts window, Shell, TotalEnergies, BP and Mercuria sought diesel cargoes in northwest Europe. No trades were concluded as buyers were not forthcoming.
Vitol also offered a diesel cargo in the Mediterranean, while Bayegan sought a Mediterranean high-sulphur gasoil cargo. No trades were agreed.
U.S. Gulf Coast diesel exports to Europe could weigh on refining margins if transatlantic arbitrage becomes favourable, Sparta Commodities analyst James Noel-Beswick said.
U.S. diesel exports to the ARA hub were on pace to reach all-time highs of 129,000 barrels per day in December, according to Kpler.
EU and British diesel and gasoil, including heating oil, imports were expected to drop in December to around 949,000 bpd, down from 1.04 million bpd in November, which was their lowest since June, Kpler data showed.
Fuel oil sulphur spreads, the outright price differential between 0.5% and 3.5% sulphur fuel oil, in ARA remained tight at $55.25 per ton on Tuesday, compared with $53 a day earlier.
Trades | Bids | Offers | Previous Session | Seller | Buyer | |
0.1 GO Barge diffs fob ARA per tonne GO-ED-ARA | ||||||
0.1 GO Cargo diffs cif NWE per tonne GO-CND-NWE | ||||||
0.1 GO Cargo diffs cif Med per tonne GO-CND-MED | Jan + $4 | |||||
50ppm barge diffs fob ARA per tonne GO50PPM-ED-ARA | ||||||
Diesel | Trades | Bids | Offers | Previous Session | Seller | Buyer |
Diesel barge diffs fob ARA per tonne ULSD10-BD-ARA | ||||||
Diesel cargo diffs cif NWE per tonne ULSD10-ANYD-NWE | ||||||
Diesel cargo diffs cif Med per tonne DL-CIFD-MED | Jan + $10 | |||||
Jet fuel | Trades | Bids | Offers | Previous Session | Seller | Buyer |
Jet fuel barge diffs fob FARAG per tonne JET-BD-ARA | ||||||
Jet fuel cargo cif NWE per tonne JET-CD-NWE | Jan + $30 |
Fuel Oil | Trades | Bids | Offers | Previous Session | Seller | Buyer |
0.5% barge fob ARA per tonne | $492 | $496 | ||||
3.5% barge fob ARA per tonne HFO-ARA | $436.75 | $443 |
ICE Low Sulphur Gasoil | LGOc1 | Previous |
Diesel ARA Barge Cracks vs Brent futures (per barrel) | $18.64 | $19.07 |
Diesel spread | LGOc1-LGOc2 |
Reporting by Enes Tunagur;
Editing by Alison Williams
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