LONDON: Diesel refining margins in northwest Europe fell on Tuesday to their lowest in two months on expectations of rising imports into the region.
Up to 450,000 barrels per day (bpd) of diesel, or some 1.8 million tonnes, is set to reach Europe and the Mediterranean in November from Asia and the Middle East, according to Reuters shipping data and traders.
That would mark a 50 percent increase from recent months.
Those imports include the 2 million barrel VLCC Coshonour Lake currently heading to Europe after originating in China.
At the same time exports from Europe to Latin America continued with at least one tanker of diesel provisionally booked with options to deliver to Brazil on Tuesday.
GASOIL
No barges of gasoil with a 0.1 percent sulphur content traded.
Four barges of 50 ppm sulphur content traded at discounts of $9-$10 a tonne fob ARA to November diesel futures, compared with $8 a tonne discounts on Monday. Gunvor and Belgomine sold to Mabanaft and Vitol.
November ICE low-sulphur gasoil futures traded 50 cents a tonne higher at $528.75 at 1559 GMT.
The November contract traded in backwardation of $4 a tonne to the December contract, $1 a tonne narrower.
The November diesel prompt refining margin to Brent crude futures was down 3.72 percent at $12.3862 a barrel.
DIESEL
Fifteen diesel barges traded at premiums of $1-$3 a tonne fob ARA to November diesel futures, unchanged from levels on Monday. Glencore, Castleton and AOT sold to Vitol.
Vitol bought two cif Amsterdam cargoes from Glencore and Hartree at $2-$2.50 a tonne above November diesel futures.
JET FUEL
Two barges traded at $35.50 a tonne fob ARA above November diesel futures and at $37 a tonne fob Amsterdam-Rotterdam-Ghent above the same contract. CCI sold to Vitol and Total sold to Shell.
BP sold to Shell a cif Rotterdam cargo.
FUEL OIL
Barges of fuel oil with 3.5 percent sulphur content traded at $317.50-$319.50 a tonne fob ARA, compared with $318-$321 a tonne on Monday.
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