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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.
OIL
Concern for tight near term global diesel supplies during the temporary Russian export ban and during the refining maintenance season are supporting the curve backwardation. Global inventories remain low despite refiners running at high utilisation rates. The strength of diesel market is supportive of the wider oil markets.
- The OPEC+ output cuts have been the primary driver of higher crude prices but also supports diesel due to the tight supplies of the medium sour crude which offers a higher yield of middle distillates for refiners such as diesel and jet fuel.
- The prompt Gasoil spread is slightly softer today but still up at 32.5$/mt (4.36$/bbl) compared to around 15$/mt at the start of the month. Dec23-Dec24 is over 115$/mt (15.47$/bbl) compared to just 20$/mt at the start of July.
- Brent backwardation is also strong but is weaker in comparison to the diesel curve. The prompt Brent spread is 1.24$/bbl and Dec23-Dec24 at 9.30$/bbl.
- Brent NOV 23 up 1.3% at 94.49$/bbl
- WTI NOV 23 up 1.8% at 91.2$/bbl
- Gasoil OCT 23 down -1.3% at 993.75$/mt
- Brent NOV 23-DEC 23 up 0.2$/bbl at 1.24$/bbl
- Brent DEC 23-DEC 24 up 0.77$/bbl at 9.38$/bbl
- Gasoil OCT 23-NOV 23 down -2.25$/mt at 33$/mt
- Gasoil DEC 23-DEC 24 down -7.75$/mt at 116.25$/mt
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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