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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DIESEL
Diesel cracks spreads are finding some support today but still net down on the week with soft near term US demand and building global stocks weighing on prices. Global supply concerns however remain a concern with ongoing disruption and risks to Russian refineries.
- Russian forces today shot down four Ukrainian drones near the town of Novoshakhtinsk in Russia’s Rostov region - home to a refinery previously struck.
- IEA today suggested potential for “a significant loss” of Russian oil-product exports with 500k-600kbpd of Russia’s crude processing capacity offline this quarter on a gross basis, before offsets.
- EIA data this week showed implied demand continues to disappoint. Four week average distillates implied demand fell further below the previous five year range to the lowest since the week to Jan. 19. Demand is now 9.4% below the normal for the time of year.
- Data this week showed building global stocks with US distillate stocks 5% below the five year average, European ARA Gasoil stocks just 0.7% below normal and Singapore Middle Distillates inventories rising to 4.9% above normal.
- The European Gasoil prompt time spread has this week fallen back close to parity and the weakest backwardation since May 2023. Europe is seeing increase flows from countries such as US and Turkey to help offset Red Sea shipping disruption.
- Gasoil MAY 24 up 1.4% at 834$/mt
- ULSD MAY 24 up 1.5% at 2.7$/gal
- Gasoil MAY 24-JUN 24 up 1.25$/mt at 3.5$/mt
- Gasoil JUN 24-DEC 24 up 3.75$/mt at 23.5$/mt
- EU Gasoil-Brent up 0.7$/bbl at 20.86$/bbl
- US ULSD crack up 0.8$/bbl at 27.37$/bbl
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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