Russia's Baltic diesel exports to fall in May

London (Quantum Commodity Intelligence) - Russia's exports of ultra-low sulfur diesel (ULSD) from the Baltic Sea port of Primorsk are set to fall by 11.8% in May from April, dropping to 1.436 mt this month from 1.575 mt last month, according to reports of the scheduled loading program.

But the lower flow has not impacted prices currently with Europe's distillate market more concerned about poor demand amid the third wave of Covid-19.

The crack value for European distillate futures in May dropped on April 30 to its lowest level since April 21, Quantum data shows.

The monthly crack value, combining April and May Low Sulfur Gasoil futures, fell to $5.34/b versus Brent futures on Friday.

The crack value for ULSD cargoes delivered into ARA also dropped Friday to just under $6/b for the first time since April 23.

Gasoil and diesel stocks held in independent storage tanks in ARA rose 4% over the week to April 28 to 2.2 million mt, according to analysts Global Insight.