Europe distillates-diesel profit margins slide as Russia boosts output
USO•Diesel refining profit margins fell 7% on Tuesday as rising Russian production weighed. Low-sulphur gasoil futures traded at a $73.90-per-barrel premium to Brent, down $5.60 from the previous close.
1. Margins and futures fall
Diesel refining profit margins fell 7% on Tuesday. Low-sulphur gasoil futures traded at a $73.90-per-barrel premium to Brent at 1706 GMT, $5.60 below the previous close.
2. Russian processing rises
Russian oil refineries increased crude processing by 25% in the second half of October compared with the beginning of the month, after persistent drone attacks on plants ceased, three industry sources said.
3. Other diesel market developments
France is expected to begin releasing 10 million barrels of diesel from strategic reserves on November 1, while retailers will not have to replace the fuel under a new government scheme. India's diesel exports are set to surge from 2027 as state-run companies boost refining capacity, and Brazil will extend a diesel subsidy of 2.12 reais ($0.39) per liter for a month.
