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Diesel Supplies from Asia to Europe Fall in Feb

OIL PRODUCTS

Shipments of diesel and gasoil-type fuels from Asia to Europe fell by 38% m/m to 191kb/d in February according to Kpler data.

  • Flows may decline further this month with lower Asian supply due to recovering domestic demand in China while European inventories remain high. March volumes have so far fallen to 129kb/d.
  • The East-West gasoil swap has narrowed this year to provide less incentive to ship the fuel. The spread has fallen from a discount of 55$/bbl at the start of the year to a discount of 19.50$/bbl.
  • US and European diesel markets are edging back up slightly this morning but are still trending lower and down on the day. The weakness reflects the wider market demand concerns with mild weather, stronger than expected Russian product output and above normal inventories in Europe adding to the move.
    • Gasoil APR 23 down -2.8% at 778.25$/mt
    • US 321 crack up 0.2$/bbl at 34.77$/bbl
    • US gasoline crack up 0.3$/bbl at 33.95$/bbl
    • US ULSD crack down 0$/bbl at 36.4$/bbl
    • EU Gasoline-Brent up 0.5$/bbl at 16.95$/bbl
    • EU Gasoil-Brent down 0.1$/bbl at 21.74$/bbl

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