The Northwest European 0.1% sulfur gasoil cargo differential fell to a fresh 2010 low at Friday's close, against a backdrop of supply surplus and poor seasonal demand, sources said.
The 0.1% NWE CIF differential lost $5.50/mt on the day to end at $8/mt below ICE September gasoil futures, a slide $13/mt since August 10, according to Platts data.
"There is plenty of oil available and absolutely no demand," a NWE cargo trader said.
"Latin American demand is being covered by the US Gulf Coast," he added, highlighting the limited outlets for material from NWE.
Sentiment for September is also bearish on expectations of continued supply from the Baltic region.
"I can't see any potential strength, Baltic barrels will land in [Amsterdam-Rotterdam-Antwerp], Germany is now 50 ppm, and if there is no export market it will be a weak picture," another trader said.
However, recent strength in the Mediterranean could offer a potential outlet going forwards, sources said.
Prompt demand in the region saw the 0.1% CIF Med differential assessed at plus $7.75/mt to ICE gasoil at Friday's close, a spread of $15.75/mt to NWE.
With freight at approximately around $15/mt from the UK-Continent to the Mediterranean, the "economics are marginal," a source said.
The 0.1% NWE CIF differential lost $5.50/mt on the day to end at $8/mt below ICE September gasoil futures, a slide $13/mt since August 10, according to Platts data.
"There is plenty of oil available and absolutely no demand," a NWE cargo trader said.
"Latin American demand is being covered by the US Gulf Coast," he added, highlighting the limited outlets for material from NWE.
Sentiment for September is also bearish on expectations of continued supply from the Baltic region.
"I can't see any potential strength, Baltic barrels will land in [Amsterdam-Rotterdam-Antwerp], Germany is now 50 ppm, and if there is no export market it will be a weak picture," another trader said.
However, recent strength in the Mediterranean could offer a potential outlet going forwards, sources said.
Prompt demand in the region saw the 0.1% CIF Med differential assessed at plus $7.75/mt to ICE gasoil at Friday's close, a spread of $15.75/mt to NWE.
With freight at approximately around $15/mt from the UK-Continent to the Mediterranean, the "economics are marginal," a source said.
