Europe Distillates-Diesel cracks dip after US stocks build

Reuters01:21
Europe Distillates-Diesel cracks dip after US stocks build

LONDON, Nov 27 (Reuters) - Northwest European diesel profit margins declined to $18.30 a barrel on Wednesday after EIA data showed a rise in U.S. inventories last week.

  • U.S. distillate stockpiles, which include diesel and heating oil, rose last week by 400,000 barrels to 114.7 million barrels, versus expectations for a 100,000-barrel rise, EIA data showed.

  • Short-term gasoil demand is strong in Europe owing to dropping temperatures in the region, as backwardation in the gasoil futures curve reached the steepest since April 2024, according to LSEG senior analyst Rakesh Varma.

  • Asian diesel markets are projected to remain supported, as regional supplies could tighten due to persistently limited exports from China, Varma said.

  • EU and UK diesel and gasoil imports are on track to fall to 926 bpd this month, down from 1.4 million bpd in October, Kpler data showed.

  • Analysts expect middle distillate inventories, which include diesel and heating oil, to have increased by about 100,000 barrels in the week to Nov. 22, according to a Reuters poll.

Trades

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0.1 GO Barge

diffs fob ARA per tonne GO-ED-ARA

0.1 GO Cargo

diffs cif NEW per tonne GO-CND-NWE

0.1 GO Cargo

diffs cif Med per tonne GO-CND-MED

Dec+ $6

50ppm barge diffs fob ARA per tonne

GO50PPM-ED-ARA

Diesel

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Diesel barge

diffs fob ARA

per tonne

ULSD10-BD-ARA

Diesel cargo

diffs cif NEW

per tonne

ULSD10-ANYD-NWE

Dec+12.50

Gunvor

Glencore

Diesel cargo

diffs cif Med

per tonne

DL-CIFD-MED

Jet fuel

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Jet fuel barge

diffs fob FARAG

per tonne

JET-BD-ARA

Jet fuel cargo

cif NEW per tonne

JET-CD-NWE

Fuel Oil

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0.5% barge fob ARA per tonne

3.5% barge

fob ARA per tonne HFO-ARA

ICE Low Sulphur Gasoil

LGOc1

Previous

Diesel ARA Barge Cracks vs Brent futures (per barrel)

$18.32

$18.95

Diesel spread

LGOc1-LGOc2

(Reporting by Ron Bousso;Editing by Elaine Hardcastle)

((Ron Bousso

email: ron.bousso@thomsonreuters.com

Twitter: https://twitter.com/ronbousso1

Tel.: +44 (0)207 542 2161

Reuters Messaging: ron.bousso.reuters.com@reuters.net))

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