Europe Distillates-Diesel cracks end year lower as supply fears ease
LONDON, Dec 29 (Reuters) -Northwest European diesel barge refining margins ended the year at $25 a barrel, some 40% lower than a year ago, as supply concerns over a European Union ban on Russian fuel imports largely did not materialise.
The EU in February imposed a ban on Russian oil imports, which accounted for a large share of the region's supplies.
But high storage levels, strong imports from Asia and the Middle East and the start-up of large, new refineries kept the European diesel market well-supplied over the year.
Diesel supply in Asia is set to jump in 2024, fuelled by new refineries in the Middle East and robust exports from China, and is likely to outpace the region's world-leading demand growth, analysts and trade sources said.
China has issued its first refined fuel export quotas for 2024 totalling 19 million metric tons, a volume unchanged from last year's and largely in line with market expectations, Chinese consultancies and multiple trading sources said on Friday.
Ten diesel barges traded in the afternoon window, with Shell and Mercuria selling to Total, Vitol and Mabnaft.
Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by 4% in the week to Thursday to 1.825 million metric tons, according to data from Dutch consultancy Insights Global.
Demand for gasoil, which includes diesel and heating oil, dropped in inland markets due to the seasonal lull, Insights Global's Lars van Wageningen said.
Trades | Bids | Offers | Previous Session | Seller | Buyer | |
|---|---|---|---|---|---|---|
0.1 GO Barge diffs fob ARA per tonne GO-ED-ARA | ||||||
0.1 GO Cargo diffs cif NEW per tonne GO-CND-NWE | Jan +$3 | |||||
0.1 GO Cargo diffs cif Med per tonne GO-CND-MED | ||||||
50ppm barge diffs fob ARA per tonne GO50PPM-ED-ARA | Jan $9 | Jan +$6 | ||||
Diesel | Trades | Bids | Offers | Previous Session | Seller | Buyer |
Diesel barge diffs fob ARA per tonne ULSD10-BD-ARA | Jan $6-$8 | Jan $7.50-$9 | Shell, Mercuria | Mabanaft, Total, Vitol | ||
Diesel cargo diffs cif NEW per tonne ULSD10-ANYD-NWE | Jan +$22 | |||||
Diesel cargo diffs cif Med per tonne DL-CIFD-MED | Jan +$22 | |||||
Jet fuel | Trades | Bids | Offers | Previous Session | Seller | Buyer |
Jet fuel barge diffs fob FARAG per tonne JET-BD-ARA | Jan $88 | CCM +$3 | ||||
Jet fuel cargo cif NEW per tonne JET-CD-NWE |
Fuel Oil | Trades | Bids | Offers | Previous Session | Seller | Buyer |
0.5% barge fob ARA per tonne | $539-$542 | |||||
3.5% barge fob ARA per tonne HFO-ARA | $411 | $417-$419 | Gunvor, Mercuria | Shell, OEI |
ICE Low Sulphur Gasoil | LGOc1 | Previous |
Diesel ARA Barge Crack(per barrel) | $25.2 | $23.5 |
Diesel spread | LGOc1-LGOc2 |
Reporting by Ron Bousso; Editing by Devika Syamnath
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