European spot prices end mixed with middle distillates down.

摘要

Spot product prices were a mixed bag in the week to Jan. 6, as light distillates and fuel oil climbed, but mid-range fuels setded lower amid rising supplies. The market was closed on Monday, Jan. 2 for the New Year holiday. ULSD and heating oil sentiment and refining margins slid on stockbuilds in the US and Europe, while jet fuel also was under pressure. On Wednesday, the US EIA reported a massive, 10.1MM-bbl spike in middle distillate stocks to 161.7MM bbl, far exceeding forecasts of a 1.1MM-bbl increase, hitting a three-month peak. The large build in the US could support diesel transatlantic arbitrage economics, resulting in additional supplies in Europe. Middle distillate stocks on the US Gulf Coast, where Europe-bound shipments are sent from, notched a record-high one-week build of 5.8MM bbl, to 45.7MM bbl. Additionally, on Thursday, data showed that gasoil inventories held in Europe's ARA storage hub posted a firm rise, stoking concerns that the market could be entering a period of oversupply. However, the build in ARA was due in part to low water levels on the Rhine River, hindering barge traffic along the key supply route to inland markets of Germany and Switzerland. The hindrance of trading activity kept a lid on the market. Also adding to oversupply fears were rising exports from Russia, were new export tax incentives just kicked in. Diesel exports from the Baltic Sea port of Primorsk were pegged to climb to 1.396MM mt (10.5MM bbl) in Jan., compared to Dec's 1.260MM mt (9.5MM bbl). Furthermore, some refinery maintenance in the Middle East was due to soon be wrapped up, likely resulting in additional exports to Europe.