Some 14 Million Diesel Barrels Tracked to Europe From U.S.
As many as 46 clean product tankers appear to have been chartered from the U.S. since March 1 to take advantage of the ultra low sulfur diesel arbitrage to Europe, including 25 said to be loading during April.
Eleven vessels, carrying 526,000 metric tons (about 3.9 million barrels) have already arrived at ports in northwest Europe or the Mediterranean between March 16 and March 9, according to the OPIS Tanker Tracker on FleetMon.com.
A further 1.368 million tons (about 10.2 million barrels) is seen arriving in Europe from the U.S. within the next five weeks based on tankers seen booked to load from the U.S. in the next three weeks or already on the water heading for Europe.
The tracker is based on information from traders, brokers and satellite tracking data compiled by OPIS, and assumes that where ships are said to be chartered to load clean petroleum product from the U.S. Gulf, that they are carrying diesel.
About 16 of the 46 vessels being tracked have yet to signal a fixed destination, or their discharge port is not known.
The diesel flow to Europe accelerated around mid March after a spike in Mediterranean prices.
But the arbitrage window looks to have closed with the delta, or difference, between U.S Gulf and delivered northwest Europe prices falling to $5.68 per ton on April 9, while current freight costs totaled $18.24 per ton for the 17-day voyage.
Buying interest in Europe has eased, and the balance month April north cargo swap has dropped to $21, down from $26.50 a week ago.
The OPIS Tanker Tracker tracks Europe-bound cargoes of ultra-low sulfur diesel and jet fuel into Europe, providing real-time information of volumes on the water and reaching ports in the region’s northwest, Mediterranean and the U.K.
The OPIS Tanker Tracker is the most comprehensive jet fuel shipping list in the business, tracking real-time cargo shipments specifically for the European jet fuel market and providing detailed shipping information, such as vessel name, volumes and buying or selling party. Learn more and take advantage of a 21-day, no obligation free trial at www.opisnet.com/products/europe-jet-tanker-tracker.aspx.