European spot prices drop as refiners cut throughput.

摘要

Spot product prices fell across the barrel in the week to July 11, continuing a recent trend of week-on-week declines, as fundamentals remained out of balance, despite refiners' attempts to curb production. Middle distillate demand was weak, but differentials were underpinned by tightening inventories and bargain buying. ULSD barge cracks increased as refiners continued to cut runs and perform unseasonal turnarounds in order to underpin weak margins. BP was seen picking up prompt material as it reportedly halted half of production at its 400K-b/d Rotterdam, Netherlands refinery for unplanned work from July 5. "BP is now a main buyer, so premiums look strong for the next days," a trader said on Tuesday. Additionally, refiners might opt to further reduce diesel output in order to boost gasoline production, as gasoline margins have climbed above those for diesel.