LONDON, Aug 5 (Reuters) - Diesel differentials in northwest
Europe declined slightly on Monday as crude oil prices also
eased while demand in the region remained muted.
Diesel supplies were boosted after refiners in the region
started blending jet fuel into the diesel pool as jet fuel
cracks decline below those for diesel, traders said.
Diesel imports of around 1.6 million tonnes from Russia and
the United States were also expected to arrive in mid-August.
'There is no demand. People are already offering for
September,' a diesel trader in Germany said.
The August/September gasoil contango, when the front month
price is lower than the next month, widened to nearly $3 a tonne
as refineries are planned to enter maintenance next month and
The current contango suggests that certain refiners may opt
for storing the product, traders said.
'A contango of $3 should be enough to cover storage
financing so this may be an alternative now,' a trader said.
Limited supply disruptions were expected in Germany as
several canals will be partially blocked this week due to
renewed strikes by lock operators.
Gasoil stocks in the Amsterdam-Rotterdam-Antwerp storage hub
rose 2.9 percent to 2.603 million tonnes in the week to July 26,
data from research firm Genscape showed on Monday.
In the Mediterranean, diesel supplies were tighter as
refineries in Spain, Italy and Greece halted or reduced
deliveries due to maintenance.
Libya issued a tender to buy 75,000-100,000 tonnes per month
of 0.1 percent gasoil from October through January 2014, traders
said on Monday.
The tender calls for the delivery of three to four cargoes
per month of 25,000 tonnes of gasoil to the ports of Benghazi,
Khoms, Misurata, Zawiya and Tobruk.
* One 0.1 percent gasoil barge traded at a discount to
August ICE gasoil futures of $1 a tonne fob ARA, unchanged from
Friday's trade. Vitol sold to Omneo.
* Two 50 ppm gasoil barges traded at $9-$10 a tonne fob ARA
above the September gasoil futures. Vitol sold to Morgan
* August ICE gasoil futures were down $4.25 to
$919.50 a tonne at 1545 GMT.
* The ICE gasoil crack was at $15.03 a barrel,
slightly down from $15.36 a barrel on Friday.
* The contango for August/September widened to
$2.75 a tonne from about $2 a tonne.
* Eleven diesel barges traded at premiums to August ICE
gasoil futures of $18-$20 a tonne fob ARA, down from $19-$21 a
tonne on Friday. Barges also traded at premium of $17-$18 above
the September gasoil futures.
* Vitol, Litasco and BP sold to Shell, Morgan Stanley and
* Two cargoes traded in northwest Europe. Trafigura sold to
Shell at $29 a tonne cif NWE above the August gasoil futures and
Vitol sold to BP at $26 a tonne above the September gasoil
* In the Mediterranean, Trafigura sold to Saras a cargo of
French spec diesel at high cif Med plus $1 a tonne cif Lavera.
* One jet fuel barge traded. KLM sold to GekoIH at $987 a
tonne fob ARA. Bids came in at $65-$67 a tonne over the August
* No cargoes traded. BP offered three cargoes at $69 and $72
a tonne cif NWE over the August gasoil futures. Vitol offered at
a premium of $67 a tonne cif NWE.
* Barges of low sulphur fuel oil (LSFO) with 1 percent
sulphur content traded at $607 a tonne fob ARA, down from $614 a
tonne on Friday.
* High sulphur fuel oil (HSFO) barges, with 3.5 percent
sulphur content traded at $605-$608.50 a tonne fob ARA, down
from $612-$615 a tonne.
(Editing by Anthony Barker)
((Ron Bousso)(email: email@example.com)(Tel.:
+44)(0)(207 542 2161)(Reuters Messaging:
Keywords: MARKETS EUROPE/DISTILLATES
(For latest physical prices double click on:, and. For energy speed guide page click on. For ARA oilstock data click on For European oilstock data click on For swaps prices double click on:)
Copyright Thomson Reuters 2013. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.