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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 PRODUCTS
Diesel spreads continue to fall back from highs seen at the end of April
- The Gasoil-Brent spread has fallen from a high of 46.3$/bbl on 28th April to only 24.4$/bbl. This is however still well above February levels of 14$/bbl. The US ULSD crack has decreased from over 70$/mt to 42.4$/mt.
- The lack of EU progress in reaching an agreement on Russian oil sanctions has reduced the risk of further immediate supply disruptions. Refiners are already diversifying feedstocks sources away from Russia and looking to maximise output on recent high margins. EIA refinery utilisation was up to 91.8% this week.
- The reduced risk of tightening can be seen through the forward curve shaping where front spreads have fallen from over 80$/mt to just 20$/mt. The curve does remain backwardated but now to a less extreme degree and at a similar level to crude markets.
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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