Benchmark Northwest European diesel barge refining ended the week slightly lower at $23.7 a barrel amid concerns about global economic activity and expectations for higher imports.

Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped by 9.5% in the week to Thursday, data from Dutch consultancy Insights Global showed.

Barge waiting times at ARA terminals were 5 to 6 days due to slower loadings as a result of lower availability of fuel in some terminals, Insights Global’s Bianca Stoiciu said.

Europe’s diesel market has tightened significantly in recent days owing to lower imports and regional refinery output, with bids for prompt cargo premiums to ICE Low Sulphur Gasoil LGOc1 rising, traders said.

European diesel imports in June look set to reach 6.02 million metric tons and are likely to exceed May’s total imports of 6.1 million tons, according to Refinitiv analyst Raj Rajendran.

Diesel exports from Asia and the Middle East to Europe are expected to rise in July and August as refining margins in Europe continue to strengthen, traders said.

U.S. distillate stockpiles, which include diesel and heating oil, rose last week by 0.4 million barrels to 114.3 million barrels, versus expectations for a 0.7 million-barrel rise, EIA data showed.
Source: Reuters