Gasoil Spreads Ease Despite Refinery Disruption

Near term Gasoil spreads are easing back from the highs of last week as Europe looks to imports to cover for the French refinery outages and missing Russian imports. Tight supplies have been eased by lower than normal outages due to spring maintenance.

• The prompt spread has fallen from a peak of 35$/mt last week down to around 24$/mt today. Longer dated spreads are edging lower today but still within the range from last week.
• French refineries are still experiencing disruption amid strike action with the Gravenchon refinery halting on Saturday and with no update on industrial action at Feyzin, Donges and Lavera refineries. Shipments at TotalEnergies Gonfreville refinery had resumed early on Friday.
• Tight global diesel supplies have been eased with strong output from Asia to Europe and the Americas in March. Output from India and Japan has driven the increase with supplies from China expected to drop in March.
• The US is sending the first substantial US diesel exports to Europe since March 2022.
• Russia’s diesel exports are on track to hit a record this month despite EU sanctions.
  • Gasoil APR 23 down -0.3% at 763.25$/mt
  • Gasoil APR 23-MAY 23 down -4$/mt at 23.75$/mt
  • Gasoil JUN 23-DEC 23 unchanged at 21.75$/mt
  • Gasoil DEC 23-DEC 24 up 0.25$/mt at 20.5$/mt