BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR PRIVACY & COOKIE NOTICE
X


US Gulf Coast distillates flows to Europe around 1.2 million mt for November

London (Platts)--13 Nov 2017 917 am EST/1417 GMT


Distillates flows to Northwest Europe and the Mediterranean from the US Gulf Coast for November arrival total around 1.2 million mt, according to data Monday from cFlow, S&P Global Platts trade flow software.

It was the first time the flow has exceeded 1 million mt since the advent of Hurricane Harvey in late August.

Sources had been expecting the US to ramp up and return to full production, putting a bit of pressure on European prices.

While the arbitrage has seen sporadic moments of workability, the flow coming over was heard to be mostly system barrels, or volume that was pretty much committed.

Article continues below...



Request a free trial of: European MarketscanEuropean Marketscan
European Marketscan

European Marketscan delivers everything you need to gain a full and clear 360 degree view of the European oil products market each business day, including:

  • Benchmark price assessments for refined oil products in key markets
  • Daily reporting of trading activity for major refined products in Europe
  • Gasoline and diesel blending component pricing and analysis
  • Expert analysis and market commentary from our International team of journalists
Request a free trialMore Information


Nevertheless, the headline figure has been dented by some volume diverting to Latin America.

Five vessels carrying distillates left over the past seven days to head to Europe, four Medium Range tankers carrying roughly 40,000 mt each and one Long Range 1 tanker carrying in the region of 60,000 mt.

Of the cargoes on water, the STI Fontvieille diverted from Lavera, France, to Contantza, Romania, in what was a relatively unusual move given the Black Sea is a regular exporter of ultra low sulfur diesel, the main product exported from the US Gulf Coast.

However, there has been a degree of tightness in the East Mediterranean, where Turkey has been tendering to buy on a regular basis, which has mopped up any excess barrels leading to nothing being currently offered on the spot market, according to one source.

Generally, freight costs mean US vessels rarely venture past the Adriatic Sea.

--George Shaw, george.shaw@spglobal.com
--Edited by Dan Lalor, daniel.lalor@spglobal.com




Copyright © 2018 S&P Global Platts, a division of S&P Global. All rights reserved.