Spot product prices increased across the barrel in the week to May 13, as many stock levels decreased in the US and/or Europe. Also, stronger futures benchmarks lent support to the cash markets. ULSD barge differentials and refining margins increased on Wednesday after data from the EIA showed that US middle distillates inventories posted a bigger-than-expected draw. Tighter supplies in the US could hinder transatlantic arbitrage economics. However, on Thursday, diesel and heating oil margins were pressured down after data showed that gasoil stocks held in ARA storage rebounded on the week, which traders attributed to hefty imports and weak inland demand. Also, inventories were expected to continue to rise in the weeks ahead as large volumes arrive from the US, Russia, the Middle East, and Asia. Additionally, in a rare arb reversal, Brazil began exporting diesel to Europe, as demand weakness in the South American country has resulted in excess supplies. Despite lofty stocks, market players noted that prompt supplies were a bit more scarce, even as Total continued offer its 270K-mt (2.0MM-bbl) cargo it had previously shipped from Asia. Meanwhile, jet fuel stocks posted a moderate dip, keeping a floor under prices.
展开▼
