Tankers booked to store distillates in Europe

At least 240,000 tonnes of clean fuel products were booked for storage in Europe beginning in late January, likely distillates, traders and shipbrokers said yesterday. Geneva-based Taurus Petroleum fixed two 80,000 tonne clean tankers for storage between 30 and 60 days, traders said.
Morgan Stanley also booked a tanker for storage between 30 and 90 days.
'The products are likely distillates rather than gasoline, because I cannot see why anyone would want to store gasoline when demand in the East remains well-supported,' said a Singapore-based trader.
A shipbroker added that there could be as many as four 80,000 tonne tankers being booked to store the clean fuels at US$15,000 a day for each tanker.
'These are most likely to be diesel,' he added.
Asian diesel cracks at US$16.75 a barrel last Friday were still some 40 per cent higher than 2010's average, but Asian demand is comparatively lower recently.
'Traders might be seizing the opportunity to store distillates ahead of maintenance refineries in Europe,' said another Singapore-based trader.
'The East-West arbitrage window could soon open. But even if it is closed, or just marginally opened, some traders would still move their distillates to Europe as it really depends on their hedging positions.'
Source: Reuters