Energy Aspects Forecasts European Diesel Stockpile Growth April-August

European gasoil/diesel stockpiles are expected to increase seasonally during April-August by about 23m bbl according to Energy Aspects while strong imports from east of Suez are expected to keep pressure on prices.

• “A weaker macro outlook, a softening supply picture, still-uninterrupted Russian exports and returning French refineries have all pushed ICE gasoil cracks to collapse” according to Energy Aspects.
• “We do not think Europe has room to run more sweets, and we can already see the region’s slate souring by 1–2 ppts in April–May as refiners turn to local grades, supporting diesel yields on paper” it added.
• Energy Aspects revised down both its 2Q and 3Q US diesel demand forecasts by 50 kb/d each versus last month “on the deteriorating macroeconomic scenario, while Latin America’s short is expected to shrink”