Diesel Recovering from Decline Yesterday Ahead of EIA Data

Diesel markets are once again gaining ground after the pull back yesterday amid tight supplies from low stocks and the refinery maintenance season. Both crack spreads and near team Gasoil time spreads are still below the highs from yesterday morning but the Gasoil Dec23-Dec24 spread is up to a new record high today.

• A fire occurred in a processing unit at the Grangemouth refinery in the UK on Monday, but Ineos said Tuesday that refinery operations and fuel supply aren’t affected. Ineos declined to say where the fire occurred.
• Low US inventories are in focus again today with the EIA weekly petroleum inventory data due for release this afternoon at 15:30BST. A small draw in gasoline and small build in distillates are expected according to a Bloomberg survey. Refinery utilisation is expected to decline. API data last night showed stock builds for both products.
  • Gasoil OCT 23 up 1.4% at 990$/mt
  • ULSD OCT 23 up 2.1% at 3.4$/gal
  • Gasoil OCT 23-NOV 23 up 2.5$/mt at 37.5$/mt
  • Gasoil DEC 23-DEC 24 up 6.25$/mt at 113.25$/mt
  • EU Gasoil-Brent up 2$/bbl at 35.24$/bbl
  • US ULSD crack up 2.3$/bbl at 53.31$/bbl