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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Naviera Nabia Orders Newbuild from Gondan

Gondan Shipyard signed a new contract for the construction of a new vessel for Naviera Nabia, part of Acuña Group, from Bueu (Pontevedra-Spain). This new catamaran

CMA CGM Proceeds with NOL Takeover after China Okay

CMA CGM, the world's third-largest container shipping firm, is to go ahead with its planned acquisition of Singapore's Neptune Orient Lines (NOL) after receiving regulatory clearance from China,

Technip Bags Statoil's Umbilical Supply Contract

Technip’s wholly-owned subsidiary Technip Umbilicals Ltd.(1) has been awarded a contract by Statoil ASA to supply the umbilical(2) to the Oseberg Vestflanken 2 field offshore Norway.

Finance

Statoil Says Sees European Gas Prices Bottoming Out

Norway's Statoil does not expect European gas prices to fall much further as rising demand from the power generation sector would offset an expected increase in liquefied natural gas (LNG) supply,

Baltic Index Down on Lower Demand for Larger Vessels

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Wednesday hurt by sluggish demand for large vessel sizes.

Commodities Shipping Firms Struggle to Ride Out Worst Downturn

Shipping companies transporting coal, and iron ore and other commodities are urgently seeking ways to conserve cash and withstand the worst market downturn on record

Energy

Statoil Says Sees European Gas Prices Bottoming Out

Norway's Statoil does not expect European gas prices to fall much further as rising demand from the power generation sector would offset an expected increase in liquefied natural gas (LNG) supply,

Technip Bags Statoil's Umbilical Supply Contract

Technip’s wholly-owned subsidiary Technip Umbilicals Ltd.(1) has been awarded a contract by Statoil ASA to supply the umbilical(2) to the Oseberg Vestflanken 2 field offshore Norway.

Wood Group Bags Statoil MSA

Wood Group has been awarded an evergreen master services agreement (MSA) by Statoil to support the life cycles of its offshore  and onshore facilities. Work and

Fuels & Lubes

ABB Saves 700,000 tons Fuel for Marine Vessels

ABB’s environmental friendly Azipod propulsion system brings greater fuel efficiency to diverse shipping segments ABB today announced the total fuel savings

First Cruise Company Fined under Australia’s New Fuel Rules

Australia’s NSW Environment Protection Authority (EPA) has fined Carnival PLC $15,000 after one of its P&O Cruises ships, the Pacific Jewel, breached new low sulfur fuel regulations in Sydney Harbour.

HUMMEL LNG Hybrid Barge Begins Second Season

For over one year the HUMMEL has been contributing to improved air quality at the port of Hamburg. Becker Marine Systems’ LNG Hybrid Barge will also be supplying

Logistics

SOLAS Container Weight Requirements FAQ

With new rules regarding the declaration of the accurate gross mass of a packed containers due to enter force, the International Maritime Organization (IMO) answers

Baltic Index Down on Lower Demand for Larger Vessels

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Wednesday hurt by sluggish demand for large vessel sizes.

Commodities Shipping Firms Struggle to Ride Out Worst Downturn

Shipping companies transporting coal, and iron ore and other commodities are urgently seeking ways to conserve cash and withstand the worst market downturn on record

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1049 sec (10 req/sec)