LONDON: Benchmark diesel refining margins in northwest Europe fell sharply on Wednesday to around $14.40 a barrel as a rise in US inventories weighed on the market.
US distillate stockpiles, which include diesel and heating oil, rose by 5.7 million barrels last week, versus expectations in a Reuters poll for a 613,000-barrel increase, Energy Information Administration data showed on Wednesday.
The rise is likely to support arbitrage economics for diesel from the United States to Europe.
At least five tankers were reported in recent days to each carry a diesel cargo of around 38,000 tonnes on a transatlantic route from the US Gulf, according to shipping reports.
They include bookings by Mercuria, Phillips66, BB Energy, Chevron and CCI.
Water levels along the Rhine river, a key waterway for transporting commodities and other products to inland locations from ARA, fell to 180 cm at the Kaub point, 3 cm lower than the previous day and their lowest since May 20.
Total SA's 225,500-barrel-per-day (bpd) Port Arthur, Texas, refinery may restore full production on Thursday when its full steam supply is available, sources familiar with plant operations said.
Comments
Comments are closed for this article.