Continent lacks sufficient ports to handle larger arbitrage cargoes from countries including Saudi Arabia and U.S., according to price-reporting agency Platts.
* Diesel deficit in France, U.K., Germany growing, increasing need for arbitrage vessels to cover demand: Platts’ editorial director for European, African oil, Andy Bonnington, says at technical workshop in London
* Number of diesel cargoes of 40k mt arriving into Europe from U.S. increased to 28 from Jan. to April this yr, up from 7 in same period yr earlier: Platts
* La Pallice, Le Havre in France; Hamburg in Germany; Amsterdam-Rotterdam-Antwerp hub in Netherlands, Belgium only ports that can accommodate larger vessels: Platts’ middle distillate team leader, Olivier Lejeune
* No U.K. port can currently take long-range vessels: Platts analysis
* Increase in vessel size may prompt Platts to change size of cargoes allowed in diesel, gasoil assessment process to as much as 40k mt from 20k mt currently; consultation period to begin shortly: Lejeune
* “We need to recognize that cargo sizes are going up. The data shows that larger vessels are coming in and the assessment needs to reflect that”: Jorge Montepeque, Platts’ global editorial director