Europe Distillates-Ample supply pressures diesel barge margins

North Atlantic Energies SA

08/03/2023 17:54

LONDON, March 8 (Reuters) - Northwest European diesel barge profits
edged lower to around $26.45 a barrel on Wednesday as supply remained ample and
the market waited to assess the impact from French strike action.
    * TotalEnergies  TTEF.PA  ‍workers on Wednesday took a majority vote to halt
production at the Feyzin refinery close to Lyon as part of wider strike action
across France against a planned pension reform, a CGT union official told
Reuters
    * The walkouts have disrupted fuel deliveries at several sites operated by
TotalEnergies and Esso  ESSF.PA  in France on Wednesday.
    * Last year extended strike action closed around 70% of France's refining
capacity. 
    * The impact on product prices depends on the duration of the walkouts,
analysts
said.
    * "We are still in wait-and-see mode. It is difficult to predict given the
48-hour
rolling nature of most of the strikes," Eugene Lindell, head of refined products
at consultancy FGE, said.
    * "The impact of the strike becomes more serious in a few days if movements
to/from the French ports and refineries are blocked," said James Burleigh,
principal analyst at consultancy Wood Mackenzie.
    * Meanwhile, European diesel imports are declining this week, according to
Refinitiv analysis. 
    * Refinitiv is tracking 2.32 million tonnes of diesel imports this week, of
which
1.07 million tonnes are Russian barrels, which is likely to result in a lower
final tally. 
    * A week ago, 2.06 mln t were scheduled, but this fell to 1.65 million
mostly due
to the missing Russian diesel.
    *         Gasoil stocks held in independent storage in the
Amsterdam-Rotterdam-Antwerp (ARA) refining and storage area fell slightly after
four weeks of gains, data from Dutch consultancy Insights Global showed on
Thursday.  ARA/ 
    * Meanwhile, U.S. distillate stockpiles  USOILD=ECI , which include diesel
and
heating oil, rose by 0.1 million barrels in the week to 122.3 million barrels,
versus expectations for a 1 million-barrel drop, the Energy Information
Administration said on Wednesday.  EIA/S 


              Trades  Bids     Offers  Previous  Seller   Buyer
                                       Session            
 0.1 GO                                                   
 Barge                                                    
 diffs fob                                                
 ARA per                                                  
 tonne                                                    
  GO-ED-ARA                                               
 0.1 GO                                                   
 Cargo                                                    
 diffs cif                                                
 NWE per                                                  
 tonne                                                    
                                                         
 0.1 GO               April                               
 Cargo                -$4                                 
 diffs cif                                                
 Med per                                                  
 tonne                                                    
                                                         
 50ppm barge                                              
 diffs fob                                                
 ARA per                                                  
 tonne                                                    
                                                     
                                                          
 Diesel       Trades  Bids     Offers  Previous  Seller   Buyer
                                       Session            
 Diesel       March   March    March   March     Gunvor,  Vitol,
 barge        -$1 to  -$1 to   flat    -$0.25    Glencor  Totsa,
 diffs fob    flat    -$2              to flat   e        Mercur
 ARA                                   (5.6KT)            ia
 Per tonne                                                
                                                      
 Diesel       April   March            March     Glencor  Shell
 cargo        +$17.5  +$10-$1          +$12.5    e        
 diffs cif    0       1                (Thames)           
 NWE                                                      
 Per tonne                                                
                                                    
 Diesel               March                               
 cargo                flat                                
 diffs cif                                                
 Med                                                      
 per tonne                                                
                                                        
                                                          
 Jet fuel     Trades  Bids     Offers  Previous  Seller   Buyer
                                       Session            
 Jet fuel                              CCM +$1            
 barge                                                    
 diffs fob                                                
 FARAG                                                    
 per tonne                                                
                                                         
 Jet fuel     April            April             Glencor  Vitol,
 cargo        +$39,            +$39-$            e,       BP
 cif NWE per  TQC              41                Aramco,  
 tonne        flat,                              Totsa    
                                                         
 -0.25
 Fuel Oil     Trades     Bids    Offers  Previous  Sell    Buy
                                         Session           
 0.5% barge   $545-$552                  $558-$56  Totsa,  Penin
 fob ARA per                             7         Shell,  sula,
 tonne                                             Mercur  OEI,
                                                   ia,     Mercu
                                                   Glenco  ria
                                                   re,     
                                                   Vitol   
 3.5% barge   $401-$403                  $404-$40  Vitol,  Penin
 fob ARA per                             6         Gunvor  sula,
 tonne                                                     Shell
  HFO-ARA                                                  ,
                                                           Mercu
                                                           ria,
                                                           BP,
                                                           Maers
                                                           k,
                                                           North
                                                           star,
                                                           Totsa
 ICE Low Sulphur Gasoil   LGOc1          Previous
 Diesel ARA Barge        $26.45          $27.52
 Crack(per barrel)                       
 Diesel spread            LGOc1-LGOc2    
 
 (Reporting by Rowena Edwards; Editing by Shailesh Kuber)
 ((Rowena.Edwards@thomsonreuters.com;))