Gasoil 0.1% sulfur FOB barges at parity with CIF NWE cargoes on tight supply

Chemical News: Gasoil 0.1% sulfur FOB barges at parity with CIF NWE cargoes on tight supply

http://www.chemnet.com Apr 19,2016 Platts
Gasoil 0.1% sulfur FOB Amsterdam-Rotterdam-Antwerp barges have risen to parity with CIF Northwest European cargoes for the first time this year, supported by a lack of material available in tanks, sources said.

Gasoil 0.1% sulfur FOB barges' spread to front-month low sulfur gasoil futures rose $4/mt Friday to minus $5.75/mt, Platts Market Data showed.

While healthy export-driven demand to West Africa continued to buoy the cargoes market, it did not mirror the lift given to the barge market from there being little material available to supply local demand, sources said.

"Everybody has already emptied their tanks [to make space for diesel] because of the long contango structure seen in the low sulfur gasoil prices," one trader said Friday.

"[One would] assume there is no 0.1% in tank as 'all' storage holders filled their tanks with ULSD," a second trader from the ARA region said Monday.

"Either barges have to go down or cargoes have to go up. Normally there has to be a premium of cargoes vs barges," a trader said.

Meanwhile, the premium of 10 ppm FOB ARA barges to 0.1% FOB ARA barges closed at $4/mt Friday, equaling its lowest since September 28, a period also supported by strong export demand.
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