ARA gasoil barges at three-month high versus cargoes
15th September 2020 21:07 GMT

Gasoil barges in the Amsterdam-Rotterdam-Antwerp hub have risen to a three-month high versus cargoes amid a mix of factors on both the supply and demand sides of the market.

One source pointed to an upcoming tax change in Germany.

"If you see demand increasing then it is firstly in Germany due to tax changes. From Jan. 1 onwards, consumers have to pay significantly more for heating oil in Germany due to CO2 and VAT tax increases, so that might trigger buying before the end of the year," the source said.

Meanwhile, imports of gasoil into ARA were set to fall to zero in the week commencing Sept. 21 from 396,000 mt in week commencing Sept. 14, according to commodity data company Kpler.

S&P Global Platts assessed 0.1% gasoil FOB ARA barges at a $6.50/mt discount to the equivalent CIF NWE cargoes on Sept. 14, the narrowest spread since June 15.

The 0.1% gasoil FOB ARA barge market rose $5.25/mt on the day to a $15.00/mt discount to front-month ICE low sulfur gasoil futures, while CIF NWE cargoes rose 75 cents/mt to an $8.00/mt discount, Platts data showed.

Bunkerworld .,
15th September 2020 21:07 GMT