Diesel Cracks and Prompt Gasoil Spreads Net Unchanged on the Week

Diesel cracks and Gasoil time spreads are falling back today after gains seen in recent days amid demand uncertainty and recovering US refinery runs while Red Sea attacks continue to disrupt trade flows and global inventories remain below normal.

• Data this week showed a dip in European ARA Gasoil stocks to 9.9% below the five year average. Singapore Middle Distillates inventories fell to 9.7% below average while US distillate stocks fell to 10.0% below normal.
• US distillates stocks this week fell more than expected with an increase in exports adding to a rise in implied demand on the week and despite the recovery in refinery utilisation. The large weekly increase in demand helped take the four week average demand back within the previous five year range but remains below normal.
• US refinery utilisation increased more than expected last week to the highest since mid January at 84.9% as the heavy outages seen in February ease and more is likely back online in the coming weeks.
• The Jun24-Dec24 Gasoil spread is net down on the week but the prompt spread and crack spreads are near unchanged.
  • Gasoil MAR 24 down -1.7% at 830.5$/mt
  • ULSD APR 24 down -2% at 2.64$/gal
  • Gasoil MAR 24-APR 24 down -1.75$/mt at 23$/mt
  • Gasoil JUN 24-DEC 24 down -2.5$/mt at 29.5$/mt
  • EU Gasoil-Brent down -1.2$/bbl at 23.49$/bbl
  • US ULSD crack down -1.5$/bbl at 32.43$/bbl