005-SPINTAX-European-refining-margins-recover-led-by-jetPosted by Mouritsen Conner on January 18th, 2021 European refining margins recover, led by jet, fuel European refining margins have recovered from their lows of last month, driven by a pick-up in products markets, especially jet gas as well as gas, following run cuts throughout the region, according to investors. "Need for items seasonally ought to get, Q2 is a time-out," said one trader Thursday. The refining margin for Norwegian unrefined grade Ekofisk (basis Amsterdam-Rotterdam-Antwerp) has actually recuperated from a low of --content--.58/ b on May 16, to .37/ b at of Thursday night, according to Platts data. drilling fluid additives chemicals for Norway's Oseberg crude is up from .71/ b on Might 21, to .88/ b Thursday evening, while that of Russian sour quality Urals is up from --content--.95/ b on Might 22 to .05/ b Thursday evening. A rally in jet gas premiums has actually rejuvenated the aviation fuel section versus other transportation fuels. The jet FOB Rotterdam barge crack to Dated Brent was at .13/ b Thursday, slightly down on the day, but on top end of a monthly range. Profession sources claimed July need is seasonally higher and incrementally up year on year. Yet the main support has actually originated from pockets of acquiring interest compelled to bid higher to tempt product out of tank after a duration of contango market framework relieved stress on sellers. The ultra reduced sulfur diesel Rotterdam barge split to Dated Brent shut at .76/ b on Thursday, reduced on the day however still higher on the month complying with the run cuts as well as lower US and Russian arbitrage quantities expected over the July duration. Nevertheless, diesel has continued to underperform gasoline as well as jet fuel on the back of proceeded solid exports over Q1 and also Q2 this year from the United States as well as the Baltics which have actually taxed cash money premiums. In gasoline, Eurobob fractures rallied Thursday as bullish view set off a steeper backwardation out there. The balance-month June Eurobob split swap was heard passing the /barrel mark, while the front-month fracture swap was evaluated at .75/ b, up --content--.15/ b on the day, as well as its highest degree in 3 weeks. The market's backwardation steepened further, with the July/August spread evaluated at /mt, up from .25/ mt the previous day. "Hearing that ARA containers are pretty empty," claimed a fuel trading resource, referring to fuel supply level issues in the Amsterdam-Rotterdam-Antwerp region.Like it? Share it! More by this author |