European Diesel Margins Ease Slightly But Remain Near Historic Highs

European diesel profit margins retreated slightly on Friday but remained near historically elevated levels, supported by persistent supply disruptions emanating from the Middle East.

At 16:37 GMT, the premium for low-sulphur gasoil futures over Brent crude futures, a key measure of refining profitability known as the crack spread, stood at $85.34 per barrel. This represented a decrease of 30 cents from the previous day's close, according to market data.

Middle East Supply Jitters

Market support continues to stem from supply-side tightness. Preliminary shipping data released Friday showed a significant slowdown in traffic through the Strait of Hormuz, a critical chokepoint in the Persian Gulf.

• The number of commodity vessels passing through the strait fell to four on Thursday.
• This is down from six vessels the previous day and is substantially below the 10-day average of approximately 16 vessels.

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Regional Inventories Stable

In Europe, diesel stockpiles at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub were largely unchanged, holding steady at 1.65 million metric tons.

No imports were recorded in the hub during the reporting period. However, market participants noted that eight cargoes are expected to arrive and unload by the end of the month.