European diesel margins held steady on Wednesday even as U.S. distillate inventories rose unexpectedly, staying close to record highs. A drone attack on one of Russia's largest oil refineries has also cut into crude processing there.
European diesel margins stayed stable on Wednesday, holding close to record high levels despite a surprise build in U.S. fuel stocks. Low-sulphur gasoil futures traded at $76.39 a barrel above Brent crude futures at 1615 GMT, up just 22 cents from the previous close.
The steady margin came even though U.S. distillate stocks, which include diesel and heating oil, rose by 0.8 million barrels last week to 104.2 million barrels, according to Energy Information Administration data. Analysts polled had instead forecast a decrease of 1.3 million barrels. Distillate stocks on the East Coast, however, dropped to a record low, the EIA reported.
On the supply side, one of Russia's largest oil refineries, Surgutneftegaz's Kirishinefteorgsintez, or KINEF, stopped crude processing following a drone attack on August 30 that damaged processing units, two industry sources said.
Source: Investing.com
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