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.

  • 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.   


  •  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 August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Algeria in Talks to Export Crude to Venezuela

Algeria is in talks to export crude oil to fellow OPEC member Venezuela, Algerian Energy Minister Youcef Yousfi said on Tuesday, confirming a Reuters report. Last week,

New Shipping Agency Enters the Market

Newly formed shipping agency Wave Shipping aims to bring change to current industry practice with its differentiated value proposition Founded by Lars Rosenkrands,

Tankship-specific Version of FindaportCD Released

Harbour & terminal information providers, Shipping Guides Ltd, says its latest tanker-specific  addition enables customers to access the most comprehensive port


Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

Statoil, DNV GL Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.


Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Bureau Veritas Diversifies with MatthewsDaniel Acquisition

Bureau Veritas announced today that it has acquired MatthewsDaniel Ltd, a global provider of loss adjusting and risk assessment services for the offshore industry.

Fogal Retires from Zentech After 57 Years in O&G

Robert “Bob” “Sonny” Fogal, Jr., one of the icons in the offshore oil and gas industry, has decided to retire from front-line work as Zentech’s Director of Business Development.

Fuels & Lubes

MN 100: FloScan Instrument Co., Inc.

3016 NE Blakeley Street Seattle, WA 98105 Telephone: 206 524 6625 / 316 E-mail: Website: CEO/President: Chuck Wurster Number

MN 100: Kluber Lubrication North America L.P.

32 Industrial Drive Londonderry, NH 03053 Telephone: 508 404 4807 E-mail: Website: CEO/President: Ralf Kraemer Number

BSEE Conducts Oil Spill Response Equipment Review

Earlier this week, BSEE's Oil Spill Response Division (OSRD) conducted an onsite review of oil spill response equipment listed in DCOR, LLC's Oil Spill Response Plan for platforms offshore Long Beach,


Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Fuel-saving Modifications for Containerships’ Engines

Mitsui Engineering & Shipbuilding Co., Ltd., and 100% owned subsidiary MES Technoservice Co., Ltd., have received an order from a Taiwan shipowner for fuel-efficiency

Tropical Storm Dolly Heads toward Mexico

NOAA's National Hurricane Center issued a tropical storm warning in effect from Cabo Rojo to Barra El Mezquital, Mexico as Tropical Storm Dolly approaches the country’s eastern coast.


MN 100: Horizon Shipbuilding, Inc.

13980 Shell Belt Road Bayou La Batre, AL 36509 E-mail: Website: President and General Manager: Travis R.

US Rail Jams Force Rush to Roads and Rivers

U.S. coal-burning power utilities are being forced to turn to barges and more expensive trucks to move coal, desperate to shore up stockpiles left dangerously low

ABS to Class Ultra Deepwater Offloading Unit

The Remora HiLoad DP BR unit design approved by ABS will have advanced capabilities for offloading operations in Brazil's Santos Basin. ABS, a provider of classification


Vard Orders Parat Electric Steam & Hot Water Boilers

During the last month, PARAT Halvorsen AS has collected four new boiler plant orders from the Vard Group and their multipurpose platform ships of Vard 1 08 design.

Imtech Marine Nav/Com Partner for Groen OSV

The first newbuild ship in a series of three offshore support vessels (OSVS) for shipowner Groen (Scheveningen), 7-Oceans, was delivered at Damen Maaskant Shipyards in Stellendam,

Chloropac Anti-Fouling Selected for Largest Decommissioning Vessel

Allseas Group S.A., a global offshore pipe installation and subsea construction company, has selected Evoqua Water Technologies’ Chloropac electrochlorination system

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Winch
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: 0.1559 sec (6 req/sec)