20 September 2013 20:14 [Source: ICIS news]
LONDON (ICIS)--The northwest European diesel cargoes market was fairly illiquid outside of the open market platform as buyers stayed away to avoid price volatility, industry sources said on Friday.
Outright diesel prices fluctuated through the week on upstream ICE Brent crude oil volatility. In the trading window, three 20,000 tonne winter-grade ultra low sulphur diesel (ULSD) cargo deals were concluded.
Vitol sold two of the cargoes, and Koch the third, to Shell and Glencore, at premiums of $28-31/tonne (€21-23/tonne) over October ICE gasoil futures. The northwest European cargoes were mostly due for loading in early October.
Cargoes premiums came off towards the end of the week on expectations that material from the US and India was due to land in Europe over the coming weeks.
Refinery turnarounds in northwest Europe, notably at Shell’s site at Pernis, INEOS’s at Grangemouth and BP’s at Rotterdam, have tightened local supply.
But imports from the US, Russia and Asia have propped up overall stocks in Europe, although most of the imports are said to have remained in the Mediterranean.
Diesel demand is healthy in Germany compared with other parts of northwest Europe, a German diesel trader said.
In the barges market, demand is healthy, but sellers are looking for higher prices and are being selective in concluding deals, a diesel trader remarked.
($1 = €0.74)
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