LONDON Jan 25 (Reuters) - Diesel cargo differentials retreated further from two-year highs on Tuesday reflecting milder weather and a likely resumption of diesel flows from Belarus.
Differentials surged to $48 premiums to ICE gasoil futures and the highest since late 2008 last week after Belarus suspended diesel exports to Europe, causing further distillate stock draws after an exceptionally cold December.
Russia has started pumping crude oil to Belarus refineries for the first time this year after a halt that hit European fuel supplies. [ID:nLDE70O11P]
"The panic of early January seems to be behind us," said a distillates trader.