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Diesel Spreads Ease Off After Fresh Rally Yesterday


Diesel spreads drift lower after another rally yesterday but still below the highs seen earlier in the week as weak demand is weighed against tighter supplies due to recent refinery outages but with increased exports expected from China.

  • China's oil product exports rose sharply in May with resumption in gasoil sales to Europe amid destocking activity after disappointing domestic industrial demand from the manufacturing and construction sectors according to S&P Global.
  • China’s top refiners plan to increase oil product exports by 19% on the month in June to 3.3m tons according to JLC.
    • Gasoil JUL 23 down -1.4% at 726$/mt
    • Gasoil JUL 23-AUG 23 up 0.75$/mt at 16.25$/mt
    • Gasoil DEC 23-DEC 24 down -0.75$/mt at 25.5$/mt
    • EU Gasoil-Brent down -0.5$/bbl at 19.8$/bbl
    • US ULSD crack down -0.1$/bbl at 31.98$/bbl

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