Europe Distillates-Diesel refining margins plunge on stocks release decision

TotalEnergies SE

02/10/2026 17:34

LONDON, Oct 2 (Reuters) - European diesel refining margins fell over 9% on Friday after Group of Seven countries agreed on the release 100 million barrels of diesel and crude oil from emergency reserves.
Low-sulphur gasoil futures LGOc1 traded at $69.81 a barrel above Brent crude futures LCOc1 at 1617 GMT, $7.17 lower than the previous close.
"Taking into account commitments that have already been fulfilled, we will implement our commitments with a coordinated release through the IEA of 100 million barrels," the G7 said in a joint statement.
It said it would begin immediately and last four months with a frontloaded substantial diesel release within 20 days by G7 members and partners.
"That would put strong downward pressure on European diesel prices, cracks and prompt spreads, while also reducing arbitrage flows from the US Gulf Coast, India and the Middle East and leaving more barrels in those regions," Sparta Commodities analyst Abhishek Kumar said of the release. 
     
 
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ICE Low Sulphur Gasoil 
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 (Reporting by Ahmad Ghaddar; Editing by Joyjeet Das)
 ((Ahmad.Ghaddar@thomsonreuters.com; +442075424435; Reuters Messaging: ahmad.ghaddar.thomsonreuters.com@reuters.net))