European diesel-refining margins rose about 3% on Thursday as escalating Middle East tensions and a US hurricane squeezed supply. Italy and France have tapped emergency reserves to ease the pressure, but Germany, one of the region's largest distillate markets, has yet to say what it will do.
European diesel-refining margins climbed about 3% on Thursday as tensions in the Middle East squeezed supply and governments stayed largely quiet on emergency stock releases. Low-sulphur gasoil futures traded at $81.16 a barrel above Brent crude futures at 1626 GMT. That marked a $2.45 increase from the previous close.
Oil prices rose Thursday on growing concern over Middle East supply, as attacks on shipping in the Gulf and the Strait of Hormuz have increased. The United States also cut output after a hurricane threatened offshore production.
Italy has completed its commitments under a March oil-stocks release plan organized by the International Energy Agency, an Italian government official said Thursday. Rome's pledge amounted to 10 million barrels, drawn only from industry stocks, according to IEA data. The official added that Italy is ready to release more once other European countries meet their own commitments.
France announced a 10-million-barrel release from its emergency diesel reserves on Wednesday. Germany, one of Europe's largest distillate markets, has not yet detailed its plans.
Source: Commodities & Futures News
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