OIL PRODUCTS
Near term Gasoil curve backwardation has eased significantly this week but tight supplies, low stocks and uncertainty over Russia crude and product supplies maintain a steeper forward curve than for crude.
- European ARA Gasoil stocks were yesterday reported as still 26.5% below the five year average according to Insights Global data
- Gasoil is in steeper backwardation despite the rally in crude spreads following the move to ease some covid restriction by China.
- The Gasoil Jan23-Feb23 spread is currently at 23.23$/mt equivalent to 3.12$/bbl compared to the Brent crude spread of 1.69$/bbl. The Gasoil Jun23-De23 spreads is at 56.75$/mt (7.62$/bbl) compared to 4.83$/bbl for Brent.
- Brent JAN 23-FEB 23 up 0.11$/bbl at 1.69$/bbl
- Brent JUN 23-DEC 23 up 0.34$/bbl at 4.82$/bbl
- Brent DEC 23-DEC 24 up 0.4$/bbl at 6.09$/bbl
- Gasoil JAN 23-FEB 23 up 1.75$/mt at 23.5$/mt
- Gasoil DEC 23-DEC 24 up 4.75$/mt at 56.75$/mt
- Gasoil DEC 23-DEC 24 up 3.25$/mt at 64.5$/mt
Source: Bloomberg
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