European Gasoil Extends Gains on Supply Concern and Low Stocks

European diesel markets extend gains from late last week amid ongoing supply concerns and low inventories although prompt spread prices remain below the peaks seen in Jun and early July.

• European and US diesel cracks rallied last week with the front month Gasoil-Brent spread up to the highest since February. Disruption to refineries in Germany this month has provided support with Bayernoil’s refinery halting heating oil deliveries through the last three weeks of July. A VDU at the Pernis refinery restarted late last week following an outage.
• European spreads will remain supported with US diesel exports expected to fall in Q4 with a seasonal demand increase and with September refinery maintenance for key suppliers according to Energy Aspects.
• Russian oil product exports are on track to edge higher this month support by near record diesel and naphtha outflows according to Vortexa data.
• Rhine water levels are set to rise considerably in the coming days to help ease pressure on barges according to Riverlake.
  • Gasoil AUG 23 up 3.3% at 821.25$/mt
  • Gasoil AUG 23-SEP 23 up 1.25$/mt at 7.5$/mt
  • Gasoil DEC 23-DEC 24 up 9$/mt at 57.5$/mt
  • EU Gasoil-Brent up 1.7$/bbl at 27.44$/bbl
  • US ULSD crack up 1.4$/bbl at 39.29$/bbl