Europe distillates-diesel profit margins fall
USO•Northwest European diesel refining margins fell 4.5% on Thursday as oil prices reversed the previous session’s losses. Low-sulphur gasoil futures traded at a $69.55-per-barrel premium to Brent, down more than $3 from the prior close.
1. Margins and stocks
Northwest European diesel refining margins dropped 4.5% on Thursday. At 1745 GMT, low-sulphur gasoil futures traded at a $69.55-per-barrel premium to Brent crude futures, compared with $72.86 at the previous close. Jet fuel stocks in the Amsterdam-Rotterdam-Antwerp hub rose nearly 29% on the week, while gasoil stocks increased 3.5%.
2. Diesel supply factors
Ukraine’s renewed attacks on Russian oil refineries added to Moscow’s difficulty addressing domestic fuel shortages while shipping diesel to international markets under an export deal with US President Donald Trump. Petrobras will import diesel in November above its average for the year as it rebuilds inventories. Chinese refiners have sold about 500,000 metric tons of November-loading diesel so far, traders and Reuters calculations showed.
