LONDON: Diesel barge differentials in northwest Europe weakened on Thursday as rising imports into the region were expected to mitigate lower regional production due to maintenance.
Several large cargoes from Asia and the Middle East were offered into the Mediterranean and northern European market throughout the day.
Demand was however limited due to few offers of smaller cargoes, traders said.
More than 1 million tonnes of diesel are currently expected to reach Europe from the East in September, according to traders and Reuters shipping data.
An additional 1.5 million tonnes were expected to arrive in the region from the US Gulf Coast.
Significantly lower exports from Russia however supported. Russia's exports of ultra-low sulphur diesel (ULSD) from the Baltic port of Primorsk in September will fall sharply by 12.4 percent to 880,000 tonnes, from the planned 1.038 million tonnes, in August due to seasonal refinery maintenance.
Water levels along the Rhine river were coming off due to dry level and could limit barge loadings in the coming weeks, shipping brokers said.
US distillate inventories, which include diesel and heating oil, rose 1.5 million barrels last week, versus expectations for a 157,000-barrel drop, the EIA data showed.
GASOIL
Two barges of 0.1 percent sulphur content gasoil traded at discounts of $5.50 and $7 a tonne fob ARA to the September Low Sulphur Gasoil futures.
No cargoes traded.
No barges of 50 ppm sulphur gasoil traded.
September Low-Sulphur Gasoil futures traded $14.50 a tonne lower at $400 a tonne at 1542 GMT.
Benchmark diesel refining margins stood at $9.05 a barrel, up from $8.94 a barrel on Wednesday.
The September contract traded at a discount of $5.00 a tonne to the October contract, unchanged.
DIESEL
Barges traded at discounts of $2-$3 a tonne fob ARA to September diesel, compared with discounts of 75 cents to $1.25 a tonne discounts on Wednesday.
One barge traded at a discount of $3 a tonne fob Flushing/Ghent.
No cargoes traded.
JET FUEL
No barges traded.
Vitol sold to BP a cargo at $26 a tonne cif Rotterdam above the September diesel futures.
FUEL OIL
Barges of 3.5 percent sulphur content fuel oil traded at $227-$227.50 a tonne fob ARA, down from $243.50-$244 a tonne a day earlier.
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