LONDON: Benchmark diesel refining margins in northwest Europe dropped on Monday as interruptions of barge traffic along the Rhine river put pressure on prices in the ARA hub.
Barge traffic along the Rhine river between Cologne and Basel has stopped due to high water levels, which are expected to drop in the coming days, according to brokers Riverlake.
Two tankers carrying diesel to North America from Europe have turned back to discharge in the continent as a rare arbitrage window appeared to close, according to traders and Reuters AIS ship tracking.
The Pacific Anna, carrying a 90,000 tonne cargo of diesel, is currently off the coast of Portugal en route to Antwerp after doing a u-turn in mid-Atlantic on Saturday.
Two 60,000 tonne vessels -- the Hafnia Europe, chartered by Litasco and the Iris Victoria, chartered by Vitol -- were expected to deliver diesel from Europe to the US Atlantic Coast in January, according to shipping data and traders. GASOIL
Three gasoil barges traded, Gunvor and Vitol sold to BP.
No barges of 50 ppm sulphur content gasoil traded.
The January Low Sulphur Gasoil contract was trading at $601.75 a tonne, 0.4 percent lower.
The January contract traded $1.50 a tonne below the February contract, 25 cents wider.
The January diesel refining margin to Brent crude futures was 2.2 percent lower at $13.20 a barrel.
DIESEL
Fourteen barges traded at discounts of 75 cents to $1 a tonne fob ARA to January diesel futures, compared with discounts of $1.50-$1.75 a tonne a day earlier. Total and Glencore sold to BP and Castleton.
No cargoes traded.
JET FUEL
Shell sold a barge to Vitol.
Shell sold a cargo to Vitol at a premium of $43 a tonne cif Le Havre above the January diesel futures.
FUEL OIL
Barges of fuel oil with 3.5 percent sulphur content traded at $361.25-$361.50 a tonne fob ARA, compared with $360-$361.50 a tonne on Friday.
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