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  • European refineries are not working at full capacity (Photo: Krohne).

11.03.2022

Artikel Nummer: 39953

Diesel pricing in frenzy


According to data published by maritime intelligence provider Vessels Value, the price for diesel continues to rise. Since the outbreak of the war in Europe on 26 February 2022, the MR Atlantic Basket (an average of freight rates on key routes in the Atlantic Basin) climbed steadily from a 25 January low of USD 5,032 per day to a current year-to-date high of USD 18,649 per day.

 

Laden tonne-miles of tankers into the region were already on a rising trend at the beginning of the year. Yet, as the crisis escalated, demand spiked to levels far above the upper end of its historical range.

 

The reasons are that, although not yet officially sanctioned, oil companies and traders have been almost completely unwilling to buy Russian cargoes. The spiralling cost of natural gas, by which refineries are powered, has meant that European refiners are unable to take advantage of widening margins and have instead cut runs.

 

While the conflict persists, it is hard to imagine a near-term scenario in which any of these trends could be reversed: European oil buyers resume purchases of Russian diesel, natural gas prices normalise, or European refiners start running at full capacity.

 

Vessel Value: "It seems likely that demand for shipping refined oil products will persist at these elevated levels and shipping capacity will be constrained by a lower laden/ballast ratio. The MR Atlantic Basket should at least hold its recent gains, if not push even higher." (sh)

www.vesselsvalue.com

 

 

 

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