Genscape weekly European market signposts - Diesel stocks draw as imports dry up

This weekly update integrates Genscape’s proprietary monitoring of near-term data with Wood Mackenzie's Product Markets Short-Term analysis to provide insight to the fast-changing European oil products markets. In recent weeks the demand for ULSD has increased as European countries have relaxed lockdown restrictions and industrial demand has recovered. Data from Genscape’s European waterborne report suggests this demand increase was met from draws in storage, rather than increased refinery runs. Stocks have drawn from both floating storage and from monitored tanks in the Amsterdam, Rotterdam, and Antwerp (ARA) hub. Meanwhile, imports into Europe from the Baltic region and the Middle East have slumped, tightening the European supply, and further incentivising inventory draws, as weak refining margins did not support materially higher crude runs.