Gasoil Spreads Ease Lower with Expected Return of European Refineries

Diesel crack spreads are ticking slightly lower with refineries in Europe expected to restart this week. The Europe Gasoil-Brent spread and prompt Gasoil time spread both saw a strong rally last week driven by outages including at Shell’s Pernis refinery, TotalEnergies Gonfreville and Shell’s Godorf.

• The Gasoil-Brent spread is drifting off from the peak of 21.48$/bbl on Friday while the Gasoil Jul-Aug spread is pulling back from the peak of 19.75$/mt earlier today.
• The TotalEnergies Gonfreville 247kb/d refinery in Normandy is restarting an unspecified unit according to a community alert following an announced outage last week.
• Shell began restarting a CDU at its Pernis refinery late last week after shutting it down earlier that week because of a leak according to Argus sources. Two vacuum distillation units that were also taken offline at the refinery are expected to restart this week.
  • Gasoil JUL 23-AUG 23 up 2$/mt at 17.75$/mt
  • Gasoil DEC 23-DEC 24 down -0.5$/mt at 26.5$/mt
  • EU Gasoil-Brent down -0.5$/bbl at 20.34$/bbl
  • US ULSD crack down -0.7$/bbl at 34.89$/bbl