LONDON: Diesel barge differentials in northwest Europe strengthened on Monday as supplies in the region tightened due to refinery maintenance and lower imports.
Low water levels along the Rhine River continued to limit barge loading, which were at around 50 percent of capacity, pushing freight rates higher, according to barge tanker brokerage Riverlake.
Demand in the cargo market was limited. The 120,000 tonne tanker San Jacinto which was heading to Gibraltar via the Cape of Good Hope has been diverted and now heading to the New York Harbour, according to Reuters ship tracking.
The vessel was chartered by Shell and was carrying ULSD, traders said.
The Mediterranean market saw a marked slowdown in activity in recent days after major tenders in Algeria and Egypt have been awarded.
The flattening of the front-month diesel contango continued, as traders opted to release stored volumes.
The arbitrage from the US Gulf Coast remained closed, limiting the imports to around 1.2 million tonnes in September, traders said. * Ratings agency Moody's said the outlook for refining and marketing industry Europe, the Middle East and Africa and in North America remains negative as demand continues to lag supply.
Amount of gasoline produced in 2015 through mid-2016 on back of low crude prices has helped outpace demand for gasoline and distillates in every major economy, Moody's said. GASOIL
No barges or cargoes of 0.1 percent sulphur content gasoil traded.
No cargoes traded.
Licorne sold to Rplympus one barge of 50 ppm gasoil traded at a discount of $7 a tonne fob ARA to the October ICE Low Sulphur Gasoil futures.
October Low-Sulphur Gasoil futures traded flat at$425.50 a tonne at 1600 GMT.
The October contract traded at a discount of $1.50 a tonne to the November contract, 25 cents narrower. * Benchmark diesel refining margins stood at $9.99 a barrel, up from $9.89 a barrel on Friday.
DIESEL Vitol sold to BP seven barges of 10 ppm diesel at discounts of $1.25-$1.50 a tonne fob ARA versus October diesel futures, stronger than Friday's discounts of $2.00-$2.50 a tonne.
No cargoes traded.
JET FUEL
Vitol sold two barges to Trafigura at premiums of $22 a tonne fob ARA above the October diesel futures.
Vitol sold a cargo to BP at $22 a tonne cif Rotterdam above the October diesel futures, compared with premiums of $23-$24 a tonne on Friday.
FUEL OIL
Barges of 3.5 percent sulphur content fuel oil traded at $245.25-$247.50 a tonne fob ARA, compared with $244-$246 a tonne fob ARA the previous session.
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