European spot prices end mixed as middle distillates rebound.

摘要

Spot product prices were varied in the week to July 25, with middle distillates climbing, light distillates edging down, and fuel oil split as LSFO fell but HSFO increased. Overall, sentiment was generally poor. ULSD and heating oil barge prices rebounded following several weeks of declines, but differentials were pressured down by slowing demand, rising inventories, and reports that a flurry of new diesel shipments were booked to send product to Europe from the US Gulf Coast. Weekly stocks held in ARA storage rose to a 27-month peak, and these levels are poised to climb higher as volumes arriving from the US in Aug. are pegged at nearly 2.0MM mt (15.0MM bbl), up from July's 1.5MM mt (11.3MM bbl). Inventories of middle distillates in the US jumped to a nine-month high, helping open the transadantic arbitrage window. Also bearish for the market, the demand that was seen in the previous week from France, Germany, and Switzerland had largely evaporated. Jet fuel sentiment remained firm on relatively low stocks; although, about 1.5MM mt (11.7MM bbl) of material is slated to arrive at the end of the month, which is expected to relieve some of the tightness. Barge prices were reported at $964.25/mt on Wednesday, after not being reported in the previous week.