Med demand supports northwest European diesel premiums

12 July 2013 17:05  [Source: ICIS news]

LONDON (ICIS)--Demand from the Mediterranean has helped support diesel premiums in northwest Europe and offset downward pressure from poor domestic trade and rising supply from Russia, industry sources said on Friday.

A diesel trader said: "There is good demand from the Med."

There have been no diesel cargo trades into northwest Europe in the open market platform so far this week, despite plenty of bids and offers from market players.

Swiss trader Vitol was in the market unsuccessfully offering on the platform, while bids were received from UK major BP, US-based trader Morgan Stanley and Switzerland-headquartered trader Glencore Xstrata.

The diesel trader said: "There is definitely lots of supply from Russia, and Vitol is handling that."

In the diesel barges market, premiums over August ICE gasoil futures offered outside the platform were high at $20/tonne (€15/tonne), but these attracted no buying interest, the trader said.

Diesel is used as transport fuel across much of Europe.

($1 = €0.76)

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By: Cuckoo James
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