Benchmark Northwest European diesel barge refining margins rose above $21 a barrel on Tuesday as data showed imports into the region were set to remain strong in July.

Diesel imports into Europe are so far expected to reach 2.9 million tonnes, based on ship tracking, according to Refinitiv analyst Raj Rajendran.

June imports into the region reach 6.7 million tonnes, up from 6.15 million tonnes the previous months, he added.

“Diesel values are pressured as these huge shipments heading to the region are not backed up by significant increases to demand with industrial activities taking a hit,” he said.

Water levels on the river Rhine in Germany have risen after rain but are still too low in northern and central areas for cargo vessels to sail fully loaded, commodity traders said on Monday.

Dry weather in June meant the river became too shallow for vessels to sail fully loaded and vessel operators imposed surcharges on freight rates to compensate for vessels sailing partly empty, increasing costs for cargo owners.

Russia’s July exports of ultra low-sulphur diesel (ULSD) from the Baltic Sea port of Primorsk are set to rise by 13.9% month-on-month on a daily basis to 1.6 million tonnes, from 1.36 million tonnes scheduled for June, two traders said on Friday.
Source: Reuters (Reporting by Ron Bousso; editing by David Evans)