LONDON: Diesel refining margins in northwest Europe edged slightly higher on Tuesday, but large stocks in the ARA hub due to limited barge movement into inland locations capped margins.
Barge loading capacity and traffic along the Rhine river were constrained by extremely low water levels on the key artery into Europe.
Access to upper Germany and Switzerland was particularly challenging, traders and brokers said.
Cold weather across Europe has increased demand for heating oil, but the limited barge movements and a relatively steep contango meant that ARA stocks remained high.
Demand in the Mediterranean has also been strong due to the cold. But that demand is expected to be covered by an influx of cargoes from the USGulf Coast, the East and northwest Europe.
US renewable fuel compliance credits dropped to a one-year low on Tuesday, traders and brokers said.
Renewable fuel (D6) Renewable Identification Numbers (RINs) for the current year traded from 65 to 67 cents each, they said.
GASOIL
No 0.1 percent sulphur gasoil barges traded.
No cargo trades were reported.
No barges of 50 ppm gasoil traded.
February Low Sulphur Gasoil was trading $3.50 higher at $489 a tonne at 1636 GMT.
The February contract was trading at a contango of $5 a tonne to the March contract, 25 cents narrower.
Benchmark diesel refining margins were at $10.66 a barrel, slightly above the $10.52 a barrel of the previous day.
DIESEL
No diesel barges traded. No cargo trades were reported.
JET FUEL
No jet fuel barges or cargoes traded.
FUEL OIL
Barges of 3.5 percent sulphur content fuel oil traded at $293-$295 a tonne fob ARA, down from $296.50-$297.75 a tonne on Monday.
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