LONDON, July 9 (Reuters) - Diesel premiums in Europe edged
up on Tuesday amid thin trade as a flow of imports was not
expected to reach the region until later in the month, traders
Diesel premiums have been in a steady decline in recent
weeks due to weak demand in the region and relatively high
volumes of imports.
'The volumes will arrive later in the month and that could
bring gasoil (futures) back into contango,' a trader said.
Around 2.3 million tonnes of diesel are expected to be
imported in July, with 1.4 million tonnes set to arrive from the
United States and an additional 900,000 tonnes from Russia,
The increase in imports from Russia, where refineries have
spurred output following maintenance, was expected to put
pressure on diesel prices in Europe.
'There is a massive change in import volumes from Russia
between June and July. The increased Russian volumes will put
more pressure on premiums,' a trader said.
The jet fuel market was seen as stagnant with some buying
reported in northern Europe and into the east Baltic.
Middle distillates and fuel oil stocks in Europe rose in
June from a month earlier as refineries processed more crude oil
throughout the month, data from industry monitor Euroilstock
* Two barges of 0.1 percent gasoil traded. Litasco sold to
Shell at $1 above the July ICE gasoil futures.
* No barges of 50 ppm gasoil traded. Bids came in at $13
above the August gasoil futures and offers at a premium of $14
over the July futures contracts.
* July ICE gasoil futures were down 0.5 percent at
$908.50 a tonne at 1607 GMT.
* The ICE gasoil crack was at $14.33 a barrel,
36 cents below Monday's level.
* The backwardation for July/August narrowed
further to $1.50 a tonne from $3 a tonne on Monday afternoon.
* Five diesel barges traded at premiums to August ICE gasoil
futures of $16 a tonne fob ARA and $15.50 a tonne above the July
futures, up 50 cents from Monday. Vitol sold to Morgan Stanley,
Mocoh and Total.
* In the Mediterranean, OMV bought a cargo of French
specifications diesel from ERG at $24 a tonne above the August
gasoil future cif Aliaga.
* No cargoes traded in northwest Europe. Morgan Stanley bid
at $22 a tonne over the August gasoil futures cif Hamburg. ENI
offered at a premium of $24.50 a tonne cif Hamburg.
* No jet fuel barges traded for a fifth session. BP bid at
$61 a tonne fob ARA over August ICE gasoil futures.
* No cargoes traded either. BP bid at $63 and $58 over the
August gasoil futures contracts.
* Barges of low sulphur fuel oil (LSFO), with 1 percent
sulphur content, were traded at $602 a tonne fob ARA, roughly in
line with the last trades on Friday.
* High sulphur fuel oil (HSFO) barges, with 3.5 percent
sulphur content, traded at $593-$593.50 a tonne fob ARA, in line
with Monday's trade.
(Reporting by Ron Bousso; editing by Jeff Coelho)
((Ron Bousso)(email: firstname.lastname@example.org)(Tel.:
+44)(0)(207 542 2161)(Reuters Messaging:
Keywords: MARKETS EUROPE/DISTILLATES
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