European Gasoil Markets Extend Decline Despite Russian Sanctions

Gasoil futures, time spreads and diesel crack spreads continue to decline driven by weak demand and efforts by Russia to maintain product outputs despite new EU and G7 sanctions.

• The Gasoil prompt spread has fallen from a high of 29.5$/mt on 23 Jan down to just 4.5$/mt today. The longer dated Jun23-Dec23 spread has also reduced from 50.5$/mt to 24.5$/mt over the last week. The Gasoil-Brent spread has declined from around 45$/bbl to 24.75$/bbl since 24 Jan.
• Planned Russian seaborne diesel exports are expected to increase by 2% in February despite the EU ban on imports from 5 Feb according to Bloomberg last week. Exports from the main Baltic and Black Sea ports are set to increase month on month to 2.74m tons in Feb from 2.68m tons in Jan.
• The EU ban on seaborne Russian oil products and G7 price cap on Russian products came into effect yesterday.
  • Gasoil FEB 23 down -2.9% at 795.25$/mt
  • Gasoil FEB 23-MAR 23 down -0.75$/mt at 4.5$/mt
  • Gasoil JUN 23-DEC 23 down -3.5$/mt at 24.5$/mt
  • EU Gasoil-Brent down -0.7$/bbl at 24.74$/bbl