Diesel Rallies With Support From Low Global Inventories

Diesel cracks and Gasoil time spreads are seeing support today with US and European front month spreads regaining the small losses seen earlier this week. Low global inventories are supporting spreads with supplies tight ahead of the winter season.

• EIA weekly petroleum data yesterday showed a drop in distillates output and a small increase in total US stocks doing little to boost the low inventories levels. Distillates implied demand was lower on the week but the four week average was little changed. The data showed US distillate stocks nearly 16.7% below the five year average.
• Singapore Middle Distillates inventories saw the first increase in five weeks but are still 29% below the five year average. European ARA Gasoil stocks were last week 11.5% below normal with the updated data due out later today.
  • Gasoil SEP 23 up 2% at 899.5$/mt
  • Gasoil SEP 23-OCT 23 up 3.75$/mt at 14$/mt
  • Gasoil DEC 23-DEC 24 up 6.5$/mt at 78$/mt
  • US ULSD crack up 1.5$/bbl at 49.21$/bbl
  • EU Gasoil-Brent up 1.5$/bbl at 34.8$/bbl