Diesel Markets Softer As Russia Eases Fuel Export Ban

Diesel markets are trading slightly lower again today to extend the weekly decline amid an easing of the Russian fuel export ban.

• The ban on Russian pipeline diesel exports via ports, which accounts for the majority of the exported diesel volumes, will be lifted immediately. Russia has imposed a prohibitive fuel duty for gray exporters at 50k rubles a ton and companies must supply no less than 50% of diesel to the local market.
• The US front month diesel crack has fallen from about 48.9$/bbl on 2 Sep to about 38$/bbl today.
• Gasoil time spread also continue to fall as backwardation softens. The prompt time spread is the lowest since 7 Sep and Dec23-Dec24 spread down to the lowest since 27 July.
• Low global stocks however remain supportive amid seasonal refinery maintenance and a recent recovery in US distillates demand. Data this week showed US distillate stocks 12.65% below the five year average, European ARA Gasoil stocks 22% below and Singapore Middle Distillates inventories 12.7% below average.
  • Gasoil OCT 23 down -1.9% at 852.25$/mt
  • ULSD NOV 23 up 0.2% at 2.87$/gal
  • Gasoil OCT 23-NOV 23 down -3$/mt at 18.5$/mt
  • Gasoil DEC 23-DEC 24 down -6.75$/mt at 68.25$/mt
  • EU Gasoil-Brent down 0$/bbl at 24.94$/bbl
  • US ULSD crack down -0.2$/bbl at 38.21$/bbl