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Diesel Markets Resume Strength Amid Tight Supply and Low Stocks

DIESEL

Diesel markets late yesterday regained losses from earlier in the week with US diesel futures settling at the highest level since January amid a wider oil market recovery yesterday.

  • Another counter seasonal draw in API crude stocks last night has added to the upside pressure on prices ahead of the updated EIA data later today.
  • US and European diesel crack spreads are edging higher again today back towards the highest since early Feb seen last week.
  • The Gasoil time spreads are also edging up again today reflect the tight market but still below the highs seen last week.
  • Refinery outages and run cuts, increasing managed money net long positions and the loss of medium-sour crude from the market are all contributing to the recent diesel strength according to FGE.
    • Gasoil AUG 23 up 3.5% at 919.75$/mt
    • ULSD SEP 23 up 0.9% at 3.11$/gal
    • Gasoil AUG 23-SEP 23 up 1.75$/mt at 12.25$/mt
    • Gasoil DEC 23-DEC 24 up 9.25$/mt at 82.75$/mt
    • EU Gasoil-Brent up 0.9$/bbl at 33.56$/bbl
    • US ULSD crack up 0.9$/bbl at 47.72$/bbl

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