Northwest European diesel barge refining margins rose on Monday to $29 a barrel amid strong buying activity following the expiry of the November Low-Sulphur Gasoil contract.

Some 22,000 metric tons of diesel traded in the afternoon window, with Glencore, BP and Vitol selling and Exxon and Litasco and Total buying.

The prompt two-month spread for the ICE Low-Sulphur Gasoil contract dropped sharply following last week’s expiry of the November contract, prompting end consumers to buy diesel, traders said.

Russian fuel producers have been told by the government to prepare for the scrapping of all remaining restrictions on the export of diesel and gasoline, three industry sources told Reuters last week.

Gasoil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp hub fell by 2.7% in the week to Thursday to 1.72 million metric tons – their lowest since December 2022, Insights Global data showed.

Global supplies of diesel were expected to rise in the coming months as plants in Europe, the Middle East and Asia Pacific return from maintenance, traders said.

Diesel flows into Europe in October tumbled to their lowest since May 2022 on the back of weaker industrial demand and many refineries in key supply locations such as India, the Middle East and U.S. closing units for maintenance, LSEG analyst Raj Rajendran said. Global imports into the region fell in October to 4.64 million tons.

Imports are, however, expected to rise in November, reaching 3.36 million tons so far, according to shipping data, Rajendran said. Middle East volumes in November already exceed arrivals made in October at 1.72 million tons.
Source: Reuters (Reporting by Ron Bousso; Editing by Alexander Smith)