FOB Rotterdam ULSD, 50 ppm barge prices hit 10-month euro lows
London (Platts)--21Jun2012/754 am EDT/1154 GMT
FOB Rotterdam ultra low sulfur diesel and 50 ppm gasoil barges prices
reached 10-month lows on a euro basis Wednesday, benefiting from a stronger
euro/dollar index and a falling underlying crude complex, Platts data show.
The 10 ppm diesel barges value was assessed at Eur677.21/mt ($861/mt)
Wednesday, the lowest since August 26, 2011, when it was assessed at
Eur670.86/mt, Platts data show.
"It's just the crude, solely driven by the falling crude," one barge
trader said Thursday, referring to falling outright values. Crude values have
tumbled in recent days, with markets weighed down by the continuing eurozone
economic woes, having shrugged off the Greek election results and Spain's
bank recapitalization plans.
Front-month ICE Brent fell as low as $91.09/b in early morning trading
Thursday, the lowest price since December 12, 2010. By 1055 GMT, August ICE
Brent had clawed back some of the day's losses to stand at $91.75/b, but was
still down 94 cents on the day.
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End-users typically buy on an outright value basis, with the recent
falls stimulating an increase in demand for both 50 ppm and 10 ppm. "On the
lower price we've seen Germany and Switzerland buying [50 ppm]," the barge
A supplier to the German market said sales were higher than typical
The increased demand has caused 10 ppm and 50 ppm barge premiums to the
front-month ICE 0.1% gasoil futures to strengthen. They were assessed at
$19.50/mt and $18.75/mt, respectively, up from $13.75/mt and 9.25/mt at the
beginning of June, Platts data show.
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