Shipments of diesel to Europe from the U.S. Gulf Coast are poised to rise over the next two weeks on stronger demand for the fuel, a Bloomberg News survey showed.
Traders will charter 10 Medium Range tankers for loading to June 12, the average of estimates from six shipbrokers specializing in the trade showed this week. That’s one more ship than in a corresponding survey for the two weeks from May 15. Each vessel would normally carry about 38,000 metric tons of cargo. No survey was conducted on May 22.
European diesel usage will build as the summer months approach, according to Andrew Reed, an analyst at Energy Security Analysis Inc. in Wakefield, Mass. Demand slowed amid ample supplies from Russia, he said. Costs to haul refined oil products to Europe from the Gulf Coast slid for an eighth session yesterday, according to the Baltic Exchange in London.
“Road-transport demand will pick up in June,” Reed said by e-mail yesterday. “That should improve demand for trans-Atlantic cargoes. Europe has gone through the transition from winter to summer without a great need for arbitrage flows.”
Four of the projected bookings have been arranged and the rest are anticipated, the latest survey showed. Thirty tankers will be seeking cargoes, one more compared with the previous survey, according to the shipbrokers.
The survey is based on the Houston-to-Amsterdam route, a benchmark for the trade that takes about 17 days at 12.5 knots, according to the sea-distances.com website.
The table below details numbers of ships booked, likely to be hired and available for charter for the two weeks from the stated dates.
*T May 29 May 15 Change Ships Hired 4 6 -33% Ships Probably Hired 6 3 +100% Total Hired 10 9 +11% Available Ships, U.S.-Europe 30 29 +3.4% *T