Lgo News

Europe: Diesel Slips as Large Imports Weigh

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.