About 1.2 million mt of oil products have loaded in the US Gulf Coast for February discharge in Europe, according to an estimate based on data from cFlow, Platts trade flow software.
The volume seen for February was down 100,000 mt on the updated figure for January, with some upward potential for any late February journeys to make up for the difference.
A total of 29 vessels have been tracked leaving the US Gulf Coast for arrival in Europe in February, of which 16 were en route as of 1430 GMT Tuesday, amounting to 630,000 mt of product, according to cFlow.
Of the 29 cargoes, 13 were expected to land in the Northwest European market, with the Mediterranean attracting 16 vessels, an unusual pattern explained by refinery turnarounds in the latter region which have tightened the diesel market.
"The Med market is not ideal, but still better than before", a trader at a producer said.
The majority of recorded cargoes from the US are likely to be diesel, as sources said the gasoil arbitrage -- which typically sees 3-4 cargoes per month from the US land into Europe -- was shut. Jet cargoes on the other hand are typically fewer, albeit not exceptional.
Arbitrage flows have slumped since the beginning of the year as the HOGO -- the spread between NYMEX heating oil futures and ICE low sulfur gasoil futures -- has widened on the back of stronger winter heating oil demand on the US East Coast and refinery turnarounds in the US Gulf.
In December, cFlow shows 1.7 million mt of US-sourced distillates discharged in Europe.
Platts calculates cargo volumes based on the size of each ship and standard diesel export sizes from the US to Europe. For example, a Medium Range tanker will be assumed to carry a 40,000 mt cargo.
