Europe Product Swaps: Refinery Cuts Support Diesel

Posted by Joseph Keefe
Monday, June 09, 2014

European diesel swaps have recovered some ground over the past week following sharp declines as local refiners were set to lower production in the face of huge import volumes.


More than 2 million tonnes of diesel are set to ship from U.S. Gulf Coast refineries to Europe in June, as well as large volumes from Russia, traders said. The ample supplies, together with lacklustre demand, have put diesel prices under growing pressure in recent weeks, forcing European refineries to curb production. "The meltdown in middle distillates... makes some sort of supply rationalisation increasingly likely in Europe," said analysts at London-based consultancy Energy Aspects.


Gasoline and naphtha swaps weakened slightly with weaker demand on the U.S. East Coast and from the petrochemical industry. "Global light end markets have not yet succumbed to the deep sell-off gripping diesel, but pressure is mounting on the top of the barrel from weakening petrochemical demand for naphtha," Energy Aspects said.


      
GASOLINE
 

The June gasoline barge swap was trading at $1,005.74 per tonne fob ARA, down slightly from $1,008.18 last week. The July swap was at $995.29 a tonne, down from $1,003.64. The May barge crack swap was trading at around $11.13 a barrel, little changed from last week.   

NAPHTHA

The June cargo swap was trading at about $928.98 a tonne cif NWE, down from $939 last week. The July swap was trading at $917.02 a tonne, up from $913.54. The June crack swap was at minus $4.20 a barrel, slightly stronger than last week's minus $4.37. The East-West spread for June widened to about $11.75 a tonne from about $7.75 last week.  
        
MIDDLE DISTILLATES
 

The June ICE gasoil futures contract was up $2.00 at $886.00 a tonne. The May-June gasoil contracts <LGO-1=R> were in a contango of $2.25 a tonne, $1 wider than last week. The June gasoil barge swap traded at $895.31 a tonne fob ARA, up from $889.51. The June diesel barge differential swap was about $9.26 a tonne fob ARA, stronger than last week's $8.75. The July barge swap was at around $10.38 a tonne, up from $9.50. The June diesel cargo differential swap was about $11 a tonne cif NWE, up from $10.25 last week. The July swap traded at around $11.50 a tonne. The June Mediterranean diesel cargo differential swap was at about $13.75 a tonne cif Med, up from $11.87.

JET FUEL  
 

The June jet fuel cargo differential swap was at $57.50 a tonne cif NWE, up sharply from last week's $38.63 a tonne. The July differential swaps was at a $57.63 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 $46.63 a tonne for June, down from $49.49 last week. The hilo for July was at $45.48 per tonne.

Reporting by Ron Bousso

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

Contracts

Wärtsilä to Begin Building LNG Terminal in January

Wärtsilä has been given full notice to proceed (NTP) from Manga LNG Oy for the supply of a liquefied natural gas (LNG) import terminal in Tornio, Northern Finland.

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

Boskalis, VolkerWessels Win Offshore Wind Farm Work

Royal Boskalis Westminster N.V., in partnership with Volker Stevin International (VolkerWessels), has been awarded a contract by Iberdrola Renewables Offshore Deutschland

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Energy

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

EGAS Tenders for as many as 48 LNG Cargoes

Egypt's state-owned gas company EGAS has tendered to buy at least 48 cargoes of liquefied natural gas (LNG) for delivery in 2015/16, three traders said. A senior

Fuels & Lubes

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

Wärtsilä to Begin Building LNG Terminal in January

Wärtsilä has been given full notice to proceed (NTP) from Manga LNG Oy for the supply of a liquefied natural gas (LNG) import terminal in Tornio, Northern Finland.

Italian Shipbuilder Pleads Guilty to Environmental Crimes

An Italian shipping firm based in Genoa, Italy, pleaded guilty to violating the Act to Prevent Pollution from Ships by falsifying required ships’ documents to hide

Logistics

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Costa Rica Approves APM Terminals Project

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said on Friday Costa Rica's environment agency had approved the construction of its Moin Container Terminal project.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Ship Electronics 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: 0.2403 sec (4 req/sec)