Europe to receive 460,000 tonnes of diesel from US Gulf Coast

25 October 2013 15:35  [Source: ICIS news]

LONDON (ICIS)--Europe is set to receive 460,000 tonnes of diesel volumes from the US Gulf Coast (USGC) in the coming weeks, shipping sources said on Friday.

Shipping fixtures published this week reveal the diesel volumes will be transported from the USGC to the UK continental shelf and the Mediterranean region on vessels due to load in late October.

US is a major source of the transport fuel for European markets, which remain short on diesel.

Supply from local sources remains curtailed on the back of the autumn refinery maintenance season, and has left the region dependent on imports from the US, as well as Russia and Asia.

European diesel traders continue to purchase diesel on a hand-to-mouth basis, as a deep backwardation in the ICE gasoil futures contracts makes long-term storage of product unprofitable.

($1 = €0.72)

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By: Cuckoo James
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