Physical gasoil cracks across barge and cargo markets in the Mediterranean and Northwest European regions have pared recent gains, as strength in the dated Brent benchmark on risk premiums -- related to Libyan protests and Egyptian turmoil -- pressures cracks lower, traders said.
The more liquid 0.1% barge crack was assessed at $14.25/barrel Tuesday, down from $15.61/b a week earlier, while the 0.1% Mediterranean cargo crack was assessed at $15.69/b from $17.02/b over the period, Platts data showed.
The dated Brent benchmark rose to $104.05/b Tuesday, from $101.56/b a week earlier.
Physical gasoil differentials have eased from their highs, while remaining strong on continued low availability of heating fuel, supporting the market in the prompt.
Demand remains strong, particularly in NWE, where it is being driven by exports, while demand for 0.1% in the Mediterranean has eased slightly as refiners opt out of desulfurizing gasoil into diesel as desulfurization margins plunge.
The dated Brent benchmark has risen as the market prices in the risk of continued turmoil in Egypt and another round of demonstrations and protests in Libya.
