European diesel refining margins dropped 7% on Thursday as EU governments weighed releasing emergency diesel reserves under pressure from the Trump administration. The decline held even after Chinese refiners halted oil product exports for October.
European diesel refining margins fell about 7% on Thursday as European countries discussed releasing emergency diesel reserves amid mounting pressure from the Trump administration. Low-sulphur gasoil futures traded at $77.44 a barrel above Brent crude futures at 1606 GMT — $5.77 lower than the previous close.
The Trump administration has told Germany and France to draw down emergency diesel inventories to help ease soaring global fuel prices, or face a potential US diesel export ban.
Separately, the European Union's energy taskforce will convene on Friday morning to discuss potential diesel stock releases, two EU diplomats said.
Margins dropped even after Chinese refiners suspended oil product exports for October, four people briefed on the matter said, as Beijing looks to preserve domestic stocks.
Source: Investing.com
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