Diesel Extends Decline on Demand Concern and Potential Russia Supply
Diesel markets are seeing further downward pressure today amid speculation that the Russian fuel export ban could be eased soon after Novak comments yesterday that Russian market is well supplied now. Front month Gasoil has fallen from over 1000$/mt to 880$/mt so far this month and the lowest since the start of August.
- The wider oil market correction has added to the bearish pressure ahead of the US payroll data due tomorrow, with economic concerns and potential future central bank rate hikes limiting demand growth expectations.
- The US front month diesel crack has fallen from about 48.9$/bbl on 2 Sep to 40.3$/bbl today.
- Gasoil backwardation is also softening with the prompt time spread and Dec23-Dec24 spread down to the lowest in about a month.
- Gasoil OCT 23 down -4.3% at 880$/mt
- ULSD NOV 23 down -1.8% at 2.96$/gal
- Gasoil OCT 23-NOV 23 down -4.75$/mt at 20.75$/mt
- Gasoil DEC 23-DEC 24 down -11.75$/mt at 80$/mt
- EU Gasoil-Brent down -1.8$/bbl at 25.95$/bbl
- US ULSD crack down -2.3$/bbl at 40.23$/bbl