LONDON: The diesel crack was steady on Friday as a global glut counterbalanced potentials gains from a fall in oil futures due to uncertainty over a potential OPEC decision to freeze output next week in Algiers.
Colonial Pipeline Co has resumed normal operations after a leak on its main gasoline line. Diesel flows were affected during the outage as gasoline was diverted through its distillates line.
"US gasoil stocks are now just short of the 5-year highs seen in January. Similar trends have emerged in Singapore, and although both gasoline and distillate gluts have yet to budge in EU-15 + Norway, this probably reflects more poorly on distillate demand given a strong decline in yields," JBC Energy said in a daily note.
Traders were awaiting the results of Algerian and Egyptian gasoil buy tenders and October diesel loading programme from the Black Sea and various Mediterranean refiners.
Barge loading along the Rhine River was limited to around two thirds of capacity due to low water levels, with little rain forecast in the coming days, barge operators said.
GASOIL
No barges of cargoes of 0.1 percent sulphur content gasoil traded.
No barges of 50 ppm gasoil traded.
October Low-Sulphur Gasoil futures traded $9 a tonne lower at $418.75 a tonne at 1601 GMT.
The October contract traded at a discount of $1.75 a tonne to the November contract, unchanged.
Benchmark diesel refining margins stood at $9.89 a barrel, up from $9.82 a barrel on Wednesday.
DIESEL
Nine barges of 10 ppm diesel traded at discounts of $2.00-$2.50 a tonne fob ARA versus October diesel futures, up from discounts of $2.50-$3.75 a tonne on Thursday. * No cargoes traded.
JET FUEL
No barges traded.
Three cargoes traded at premiums of $23-$24 above October diesel futures. Vitol and Shell sold to BP.
FUEL OIL
Barges of 3.5 percent sulphur content fuel oil traded at $244-$246 a tonne fob ARA, compared with $245-$246 a tonne fob ARA the previous day.
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