European diesel margins increased on Friday as the low-sulphur gasoil futures premium to Brent crude widened by $1.44 to $76.52 per barrel by 1530 GMT.
High diesel margins are pushing refiners to increase diesel production, according to James Noel-Beswick of Sparta Commodities. Refiners are converting fuel from jet, gasoline and fuel oil pools to produce more diesel, which is also affecting overall refining margins.
China’s refined fuel exports rose in July, with gasoline, diesel and jet fuel shipments to destinations outside Hong Kong and Macau reaching 1.74 million metric tons, more than double the June volume.
Seaborne fuel oil and vacuum gasoil shipments from Russian ports to Saudi Arabia totaled 1.1 million tons in July, down 18% from June, according to data from traders and LSEG. Saudi Arabia remained the largest destination for these cargoes during the month due to summer air-conditioning demand.
Indian refiners processed 5.62 million barrels per day of crude in July, a 6.8% increase from June, provisional government data dated August 20 showed.
Source: Investing.com
