Diesel Spreads Reverse Gains From Yesterday

Diesel cracks have reversed the gains seen yesterday with tight supplies eased by reports of higher imports into Europe. The Gasoil-Brent spread has fallen back from 36.7$/bbl to 33.4$/bbl but still above 28.7$/bbl from the start of the month.

• Diesel arrivals into the EU and UK are forecast at the highest since January to be 1.4mb/d in the first 15 days to September driven by flows from Saudi Arabia and Qatar, according to Bloomberg and Vortexa data.
• The October ICE Gasoil contract is trading lower on the day with the expiry of the September contract today.
• The monthly delivery of gasoil to settle futures in the ICE Futures Europe market rose from last month up to 1,011 lots (101.1k tons) compared with 909 lots in August and 302 lots in September last year.
  • Gasoil OCT 23 down -1% at 970.25$/mt
  • ULSD OCT 23 down -0.9% at 3.33$/gal
  • Gasoil OCT 23-NOV 23 down -4.25$/mt at 33.75$/mt
  • Gasoil DEC 23-DEC 24 down -4.5$/mt at 104.25$/mt
  • EU Gasoil-Brent down -2$/bbl at 33.48$/bbl
  • US ULSD crack down -2.9$/bbl at 50.86$/bbl