Diesel Markets Fall as Russia Considers Easing Export Ban

Diesel cracks continue to pull back as Russia is ready to partially lift its diesel ban in the coming days by allowing pipeline exports subject to quotas according to sources cited by Kommersant.

• The US front month diesel crack spread is down to 42.6$/bbl from a peak of 48.9$/bbl on 2 Oct and from a previous peak of over 56.7$/bbl in mid Sep.
• Diesel markets have followed the wider market correction lower in the last week weighing the impact of the Russian fuel export ban against recent high Asian exports amid economic concerns from a stronger USD and future major central bank policy.
• Gasoil time spreads are also falling towards the lows seen early last week with the prompt spread nearing 24$/mt and Dec23-Dec24 approaching 90$/mt.
  • Gasoil OCT 23 down -1.5% at 936.5$/mt
  • ULSD NOV 23 down -2.2% at 3.13$/gal
  • Gasoil OCT 23-NOV 23 down -3.5$/mt at 25.75$/mt
  • Gasoil DEC 23-DEC 24 down -7$/mt at 92.75$/mt
  • EU Gasoil-Brent down -1.6$/bbl at 27.75$/bbl
  • US ULSD crack down -1.9$/bbl at 42.61$/bbl