LONDON: Diesel barge differentials in northwest Europe slightly weakened on Monday as a rising flow of imports from Asia and the Middle East was expected to offset lower region production.
Low water levels after recent dry weather are preventing cargo vessels from sailing fully loaded on the Rhine and Danube rivers in Germany, traders said on Monday.
Barge tankers are loading at around two thirds of capacity, traders and brokers said. * European diesel stocks were expected to draw in September and October due to refinery maintenance, but rising imports narrowed the gap to around 150,000 tonnes, according to traders.
Around 1.5 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.
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.
German consumer heating oil stocks at the start of August rose to 59 percent of tank capacity from 58 percent a month earlier, according to data from a trade source.
GASOIL
Gunvor sold to AOT one barge of 0.1 percent sulphur content gasoil at a discount of $7 a tonne fob ARA to the September Low Sulphur Gasoil futures.
No cargoes traded.
Glencore sold to Total two barges of 50 ppm sulphur gasoil at discounts of $1.50 and $2 a tonne fob ARA to the September diesel futures.
September Low-Sulphur Gasoil futures traded $3.75 a tonne higher at $413.75 a tonne at 1545 GMT.
Benchmark diesel refining margins stood at $9.08 a barrel, down slightly from $9.11 a barrel on Friday.
The September contract traded at a discount of $4.50 a tonne to the October contract, 25 cents wider.
DIESEL
Six barges traded at discounts of $2-$2.50 a tonne fob ARA to September diesel, compared with discounts of $1-$2 a tonne discounts on Friday. Glencore and Litasco sold to Shell and Total.
In the Mediterranean, Litasco bought a cargo from Repsol cif La Nouvelle.
JET FUEL
Two barges at a premium of $15 and $16 a tonne fob ARA above the October diesel futures. Litasco sold to Mabanaft and Trafigura.
No cargoes traded.
FUEL OIL
Barges of 3.5 percent sulphur content fuel oil traded at $236-$236.50 a tonne fob ARA, up from $230.50-$231 a tonne a day earlier.
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