Europe Distillates-Cracks Rise Despite Wave of Imports

Maritime Activity Reports, Inc.

June 25, 2018

Benchmark diesel barge refining margins in northwest Europe rose at the start of the week despite plentiful imports from Asia, the Middle East and the United States. Recent highlights include:

* In recent days at least seven Diesel cargoes carrying around 550,000 tonnes were booked out of Asia and the Middle East to northwestern Europe as the arbitrage on the route remained open, according to shipping data and traders.
* In addition the arbitrage from the U.S. Gulf coast was also open with at least eight tankers booked to go to Europe, carrying around 350,000 tonnes of products, most likely Diesel.
* Benchmark crude prices were down 1.2 percent.

* One barge of 0.1 percent sulphur content gasoil traded at a discount of $13 to the July diesel contract. Shell sold to Vitol.
* Glencore and Belgomine sold to Mabanaft one barge each of 50 ppm gasoil at discounts of $10 a tonne fob ARA to the July contract, compared with $8 on Friday.
* The July low-sulphur gasoil contract traded 0.5 percent lower at $642.25 a tonne at 1605 GMT.
* Benchmark diesel refining margins <LGOc1-LCOc1> were 7.2 percent higher at $12.0058 a barrel.
* The July contract traded 50 cents below August, compared with 75 cents a tonne below August on Friday.
* Around 20,000 tonnes of diesel traded on barges at flat, and one at a $0.50 premium, a tonne fob ARA to the July diesel contract compared with a range from discounts of 50 cents to premiums of $1.25 on Friday. Total, Belgomine and Glencore sold to Mabanaft and Vitol.

* Barges of fuel oil with 3.5 percent sulphur content traded at $410-$ 411 a tonne fob, compared with $410.50 a tonne in the previous session.
(Reuters reporting By Shadia Nasralla; Editing by Jan Harvey)

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