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Gasoil Spreads Ease Back from Peak on 21 June

DIESEL

Gasoil markets are easing back with the prompt spread down to 12.5$/mt after a peak of 17.75$/mt on 21 June as supply concerns ease and with wider market uncertainty over global demand. Spreads saw a strong rally between 12-16 June driven by European refinery outages and low inventories.

  • Germany’s Vohburg refinery stopped making wholesale deliveries of diesel early Friday until 1030am according to Bloomberg sources. Deliveries were also limited for four hours on Thursday in the second interruption to supply so far this month.
  • Diesel supplies to Europe from the Middle East and India are making up for the missing Russian supplies as global trade flows are redirected. US distillates supplies to Mexico, Chile and UK are increasing as flows to Brazil are falling due to competition from Russia.
    • Gasoil JUL 23 down -2.7% at 693$/mt
    • Gasoil JUL 23-AUG 23 down -1.5$/mt at 12$/mt
    • Gasoil DEC 23-DEC 24 down -3$/mt at 19.5$/mt
    • EU Gasoil-Brent down -0.7$/bbl at 19.04$/bbl
    • US ULSD crack down -0.8$/bbl at 31.03$/bbl

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