Europe distillates-diesel profit margins hold steady
USO•Northwest European diesel refining margins were little changed, as falling U.S. distillate inventories offset the prospect of higher Chinese fuel exports. Low-sulphur gasoil futures traded at a $74.03-per-barrel premium to Brent, down 21 cents from the previous close.
1. Inventory decline offsets export outlook
U.S. distillate stockpiles fell by 1.5 million barrels last week to 102.8 million barrels, more than the 0.9 million-barrel decline expected in a poll. China issued a fourth batch of fuel export quotas for gasoline, diesel and jet fuel, bringing its 2026 total in line with 2025 despite curbs earlier in the year.
