European spot prices drop despite a slash in refinery runs.

摘要

Spot product prices decreased in the week to June 6, amid poor fundamentals, which refiners tried to counteract by cutting refinery rates. Refiners in the Mediterranean are seen reducing refinery utilization, whether by cutting runs or extending maintenance, by up to 25%, while in Northwest Europe, rates are seen falling by around 15%. ULSD barge differentials found some support late in the period after several buyers stepped into the market to take advantage of low prices. Diesel refining margins dropped to a four-year low, and prices have come under pressure in recent weeks amid heavy inflows of material from the US and Russia, combined with relatively weak demand in Europe. Shipments to Europe from the US Gulf Coast alone were pegged at around 2MM mt (15MM bbi) for June, while Russia's shipments were seen rising from the previous month. Weekly stocks held in Europe's ARA hub jumped, while middle distillate stocks in the US soared to their highest level since mid-Jan. Jet fuel crack spreads remained pressured as inventories swelled, but traders noted that the stockbuilds likely were in anticipation of higher consumption going forward when summer demand kicks in. Market players noted that hefty volumes arrived from South Korea and India. Heating oil sentiment was poor, but the market received a small boost from bargain buying in Germany.