LONDON: Diesel refining margins in northwest Europe weakened on Monday as supplies in the region were expected to rise in the coming weeks.
The 2 million barrel tanker Coshonour Lake was heading to Europe with a cargo of diesel after leaving the port of Singapore on Monday, according to Reuters shipping data and traders.
The 245,000 tonne cargo is expected to arrive at the Straits of Gibraltar on Nov. 26, according to Reuters data.
The vessel left the port of Tianjin in northern China in late September and loaded part of its cargo in Taiwan before heading to Singapore, where it is now almost fully loaded, according to the data.
At least four diesel cargoes booked to go from the US Gulf Coast to Latin America have been diverted in recent days to Europe, according to traders and shipping data.
At the same time, a number of cargoes have been booked in recent days to deliver diesel from Europe to Latin America, continuing a flow that grew in the wake of Hurricane Harvey.
China's diesel exports in September fell to the lowest monthly level since January as domestic demand picked up ahead of winter and refiners ran out of quotas.
Outbound diesel shipments in September were down 26.1 percent from a year earlier at 1.18 million tonnes, according to data released by the General Administration of Customs on Monday. GASOIL
Barges of gasoil with a 0.1 percent sulphur content traded at discounts of $19 a tonne fob ARA to November diesel futures, weakening from discounts of $17 a tonne on Friday.
Barges of 50 ppm sulphur content traded at discounts of $8 a tonne fob ARA to November diesel futures.
November ICE low-sulphur gasoil futures traded $4.25 a tonne lower at $428.75 at 1545 GMT.
The November contract traded in backwardation of $5.25 a tonne to the December contract, unchanged.
The November diesel prompt refining margin to Brent crude futures was down 1.85 percent at $12.8153 a barrel.
DIESEL
Nine diesel barges traded at premiums of $1-$3 a tonne fob ARA to November diesel futures, compared with a premium of $1-$2 a tonne a tonne on Friday. Glencore and Castleton sold to Vitol.
In the Mediterranean, Gunvor sold to BP one cargo at $3.50 a tonne cif Koper above the November diesel futures.
JET FUEL
No barges traded.
No cargoes traded.
FUEL OIL
Barges of fuel oil with 3.5 percent sulphur content traded at $318-$321 a tonne fob ARA, little changed.
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