Europe Distillates-Cracks steady amid strong regional demand

LONDON: Diesel refining margins in northwest Europe held steady on Wednesday, supported by strong regional demand and lower imports.

Demand in Germany, Switzerland, Britain and France has been strong in recent days, drawing cargoes and products from regional refineries, traders said.

ARA barge activity was nevertheless slower as most inland demand was met locally, barge traders and brokers said.

US distillate stockpiles, which include diesel and heating oil, slipped last week 536,000 barrels, versus a 1.0 million-barrel drop forecast, EIA data showed.

The arbitrage from the US Gulf Coast remained shut as Latin America continues to draw the bulk of the diesel exports. Around 1 million tonnes are expected to be imported on the transatlantic route in April, traders said.

Imports from Asia and the Middle East are set to remain steady at around 1.5 million tonnes in April.

China plans to impose consumption taxes on oil by-products such as mixed aromatics, light cycle oil and bitumen blend, tightening regulations on a fuel import market worth millions of dollars.

GASOIL

Barges of 0.1 percent sulphur content gasoil traded at discounts of $12 a tonne to ICE April Low-Sulphur Gasoil futures, weaker than Tuesday's trades at discounts of $9-$11 a tonne.

In the Mediterranean, BP sold to Vitol a cargo of 0.1 percent sulphur content gasoil at a discount of $5.50 a tonne cif Lavera to the April diesel futures.

No barges of 50 ppm gasoil traded.

April ICE Low Sulphur Gasoil futures were up $2.50 at $480.25 a tonne at 1540 GMT.

Benchmark diesel refining margins were at $10.50 a barrel, up slightly.

The April contract traded at a $1.25 a tonne discount to the May contract, unchanged.

DIESEL

Barges traded at discounts of 50 cents to $1.50 a tonne fob ARA to April diesel futures, compared with discounts of 25 cents to 75 cents a tonne on Tuesday.

No cargoes traded.

JET FUEL

No barges traded.

There were no cargo trades.

FUEL OIL

Barges of 3.5 percent sulphur fuel oil traded at $288-$289.50 a tonne fob ARA, up from $286.25-$287 a tonne on Tuesday.