Europe gasoil premiums stable, diesel supply dependent on US, Russia

09 August 2013 16:56  [Source: ICIS news]

LONDON (ICIS)--Northwest European gasoil premiums have remained stable in the barges market, and the market is dependent on US and Russian imports for diesel supply, industry sources said on Friday.

Gasoil barges premiums over the daily gasoil futures settlements at the IntercontinentalExchange (ICE), against which physical gasoil is normally benchmarked, are steady from last week.

Bids outside the open market platform were seen at a discount of $1/tonne to the ICE gasoil futures, while offers were at a premium of $1/tonne, relatively low as a result of poor demand, a trader said.

Demand for gasoil – which is normally used as a heating fuel – normally declines during summer.

A second gasoil trader said diesel demand was almost equally subdued. "Nothing's trading," it said.

The first trader added: "Diesel demand is very bad. Supply is looking a little bit healthier. For next few months, expect more demand and less local supply, with some maintenance here and there in the region. So very much depending on how flows come from Russia and the US."

Meanwhile, gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) hub are stable compared with the previous week, independent stock data released on Thursday revealed.

Diesel is a variant of gasoil and is mainly used as a transport fuel.

($1 = €0.75)

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By: Cuckoo James
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