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Gasoil Cracks and Time Spreads Gain on European Refinery Disruptions

DIESEL

Diesel margins and time spread gain ground today to extend the small recovery yesterday amid a fire at Bayernoil’s Neustadt refinery and a halt to OMV diesel deliveries from a storage site in Munich possibly due to Rhine river levels according to Bloomberg.

  • Operations at Neustadt refinery have been partly shut due to a fire that occurred on Tuesday afternoon although no further information on which part of the refinery has been shut down.
  • Diesel cracks are balancing weak demand concerns and returning global supplies against low global inventories.
  • The prompt Gasoil time spread has rallied from a low of 6.75$/mt yesterday up to 12.25$/mt today while the Gasoil-Brent spread is up from around 17.3$/bbl to 19$/bbl.
    • Gasoil JUL 23 up 1.2% at 726.5$/mt
    • Gasoil JUL 23-AUG 23 up 3$/mt at 12.75$/mt
    • Gasoil DEC 23-DEC 24 up 2.25$/mt at 25.5$/mt
    • EU Gasoil-Brent up 0.9$/bbl at 19.11$/bbl
    • US ULSD crack up 0.8$/bbl at 32.06$/bbl

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