Europe: Diesel Slips as Large Imports Weigh

Posted by Michelle Howard
Monday, June 02, 2014

European diesel barge swaps weakened in the week to Monday as huge product inflows from the United States and Russia continue to put heavy pressure on prices.
    
Diesel imports from the U.S. Gulf Coast were expected to exceed 2 million tonnes in June for the second month in a row as U.S. refineries increase production following maintenance.
   

Demand in Europe is nevertheless lukewarm, resulting in ample supplies in the region, traders said. "While there are early signs of refinery runs being cut, particularly in Asia where Urals (crude oil) prices are weakening despite lower Russian exports, all signs point to a prolonged period of weakness in global distillates prices," said Robert Campbell, analyst at Energy Aspects consultancy.
   

With diesel refining margins dropping to a two-year low last week, European refiners might reduce operating rates in June, which could spark a recovery in July, he added.
 

Gasoline swaps for June slightly weakened as arbitrage opportunities to the U.S. East Coast remained limited but still found support in demand from West Africa, traders said.
    
Gasoline

  • The June gasoline barge swap was trading at $1,008.18 a tonne fob ARA, down from $1,015.77 a tonne fob ARA last week. The July swap was at $1,003.64 a tonne.  
  • The May barge crack swap was trading at around $11.17 a barrel, up slightly from $11.11 a barrel last week.   


Naphtha   

  •  The June cargo swap was trading at about $939 a tonne cif NWE, down from $942.62 a tonne cif New last week. The July swap was trading at $913.54 a tonne.  
  •  The June crack swap was at minus $4.37 a barrel, stronger than last week's minus $3.68 a barrel.
  •  The East-West spread for June narrowed significantly to about $7.75 a tonne from about $11.25 a tonne last week.  

        
Middle Distillates   

  •  The June ICE gasoil futures contract was down $2.50 at $890.00 a tonne.
  •  The May-June gasoil contracts <LGO-1=R> were in a contango of $1.25 a tonne.
  • The June gasoil barge swap traded at $889.51 a tonne fob ARA, down from $916.75 a tonne last week.
  • The June diesel barge differential swap was about $8.75 a tonne fob ARA, lower than last week's $9 a tonne. The July barge swap was at around $9.50 a tonne.
  • The June diesel cargo differential swap was about $10.25 a tonne cif NWE, down from $11 a tonne last week.
  • The June Mediterranean diesel cargo differential swap was at about $11.87 a tonne cif Med, down from $15 a tonne.


Jet Fuel   

  • The June jet fuel cargo differential swap was at $38.63 a tonne cif NWE, weaker than last week's level around $47.20 a tonne. The July differential swaps was at a $38.63 tonne.  

Fuel Oil   

  • The premium on fuel oil with 1 percent sulphur content over fuel oil with 3.5 percent sulphur, known as the hilo, was about $49.49 a tonne for June, down from $57.59 a tonne last weekk. The hilo for July was at $46.31 a tonne.

(Reporting by Lin Noueihed, editing by David Evans)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

Energy

MARAD Seeks Comments on Proposed Policy for Deepwater Export Applications

The Maritime Administration (MARAD) is seeking comments on the agency’s proposed policy to accept, evaluate and process license applications for the construction

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Fuels & Lubes

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

News

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Barges

FMT Orders Another Towboat from Eastern Shipbuilding

Eastern Shipbuilding Group, Inc. is pleased to announce that Florida Marine Transporters, Inc. of Mandeville, LA exercised another additional 90’x32’x10’ “Canal

New Gate Transits the Panama Canal

The first gate for the new locks in the Pacific side began transit Wednesday morning through the Panama Canal, signaling another historic milestone in the progress of the Expansion Program.

Sunken Barge Salvage Stops Traffic on Chicago River

The U.S. Coast Guard said it is restricting vessel traffic on the Chicago River to allow for salvage of a sunken barge. All cargo has been removed from the sunken

Vessels

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

 
 
Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1505 sec (7 req/sec)