ARA Gasoil Inventories Slump With Diesel Backwardation: IG

(Bloomberg) — ARA gasoil inventories slumped to their
lowest level in five months as steep backwardation in Europe’s
diesel market removed any incentive for storage, according to
Insights Global.
* Gasoil/diesel stockpiles in independent storage in NW Europe,
the lowest since May 23, and below the five-year seasonal average
** Pronounced backwardation in ICE gasoil mean there is “no
incentive whatsoever” for market participants to store diesel,
Lars Van Wageningen, operations director of Insights Global,
said by phone
** NOTE: M1 gasoil settled at $7/ton more than M2 gasoil on
Wednesday, a price structure known as backwardation, ICE Futures
Europe data shows
** The M1-M2, highest so far in 2019 excluding expiry day anomalies

* Gasoline stockpiles, the lowest in two
weeks; remained above 5-year seasonal average
** Stockpiles drew in past week as shipments increased to the
U.S. and West Africa, while port delays in Amsterdam also eased:
** There were outgoing gasoline cargoes in the past week to
Australia, Brazil, Canada, U.S., West Africa, Insights Global
list shows

Reporter: Bill Lehane

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