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Diesel Backwardation Flattest Since Dec 2021

OIL PRODUCTS

US and European diesel forward curve backwardation are the narrowest since December 2021 due to weak demand and suggesting ample supplies.

  • The Gasoil prompt spread traded down to a low of 0.75$/mt yesterday compared to a high of 22 in mid March. The Jun23-Dec23 spread is down from around 25$/mt at the star of the month to just 4.5$/mt.
  • The prompt US diesel spread has fallen from 8.93c/gal on 22 Mach to just 0.33c/gal today.
  • The wider oil market economic concerns are weighing on the diesel market while supply has picked up with increasing refinery runs in US, Europe and Asia. Global supply could start to tighten again if the low margins cause refinery run cuts in Asia in the coming months.
  • Gasoil MAY 23 down -0.3% at 713.75$/mt
  • Gasoil MAY 23-JUN 23 up 0.25$/mt at 1.75$/mt
  • Gasoil JUN 23-DEC 23 down -0.75$/mt at 4$/mt
  • Gasoil DEC 23-DEC 24 down -1.5$/mt at 22.5$/mt
  • ULSD MAY 23 down 0% at 2.45$/gal
  • ULSD MAY 23-JUN 23 down -0.05c/gal at 0.29c/gal

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