Europe Distillates-Diesel margins gain on hopes for stronger demand

China Aviation Oil (Singapore)

04/11/2024 16:43

LONDON, Nov 4 (Reuters) - Northwest European diesel
barge profit margins rose above $17 a barrel on Monday as colder
weather in the region was expected to boost demand.
    * The diesel market has strengthened in recent days due to
lower
storage levels in the region and expectations for stronger
demand as temperatures drop, traders said.
    * The ICE Low Sulphur Gasoil six-month forward spread
 LGOc1-LGOc7  was in a backwardation of $4 per metric ton,
flipping from a contango of $4 a ton on Oct. 28, suggesting
expectations for tightening supplies and stronger demand going
forward.
    * Chinese refiners are expected to reduce fuel output for
the rest
of the year and maintain lower run rates in the first quarter of
2025 despite a seasonal demand uptick, as profit margins and
fuel consumption in road transport remain weak.
    * South Korean refiners reported sharp losses in the third
quarter
from oil refining, but expect their margins to recover in the
fourth quarter with peak winter demand and refinery run cuts in
Asia.
    * EU and UK diesel and gasoil imports reached about 1.28
million
barrels per day in October, slightly above September levels,
Kpler data showed.



                   Trades  Bids   Offers  Previou  Seller  Buyer
                                          s                
                                          Session          
 0.1 GO Barge                                              
 diffs fob ARA                                             
 per tonne                                                 
  GO-ED-ARA                                                
 0.1 GO Cargo                                              
 diffs cif NWE                                             
 per tonne                                                 
  GO-CND-NWE                                               
 0.1 GO Cargo                                              
 diffs cif Med                                             
 per tonne                                                 
  GO-CND-MED                                               
 50ppm barge                                               
 diffs fob ARA                                             
 per tonne                                                 
  GO50PPM-ED-ARA                                           
                                                           
 Diesel            Trades  Bids   Offers  Previou  Seller  Buyer
                                          s                
                                          Session          
 Diesel barge                                              
 diffs fob ARA                                             
 per tonne                                                 
  ULSD10-BD-ARA                                            
 Diesel cargo                                              
 diffs cif NWE                                             
 per tonne                                                 
                                                          
 Diesel cargo              Nov    Nov                      
 diffs cif Med             $7.50  $16                      
 per tonne                                                 
  DL-CIFD-MED                                              
                                                           
 Jet fuel          Trades  Bids   Offers  Previou  Seller  Buyer
                                          s                
                                          Session          
 Jet fuel barge                                            
 diffs fob FARAG                                           
 per tonne                                                 
  JET-BD-ARA                                               
 Jet fuel cargo                                            
 cif NWE per                                               
 tonne                                                     
  JET-CD-NWE                                               
 
 Fuel Oil      Trades   Bids   Offers  Previous  Seller  Buyer
                                       Session           
 0.5% barge    $500-$5                 $499-501          
 fob ARA per   17                      (9                
 tonne                                 barges)           
 3.5% barge    $433-$4                 $455-473          
 fob ARA per   49                      (13               
 tonne                                 barges)           
  HFO-ARA                                                
 ICE Low Sulphur Gasoil   LGOc1           Previous
 Diesel ARA Barge        $17.11           $16.66
 Cracks vs Brent                          
 futures (per barrel)                     
 Diesel spread            LGOc1-LGOc2     
 
 (Reporting by Ron Bousso; Editing by Shailesh Kuber)
 ((Ron Bousso
email: ron.bousso@thomsonreuters.com
Twitter: https://twitter.com/ronbousso1
Tel.: +44 (0)207 542 2161
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