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Gasoil Spreads Surge Amid Further European Refinery Disruption

DIESEL

Near term gasoil time spreads and diesel cracks surge amid further disruption for heating oil supplies in Europe. The Shell Wesseling has reported a halt to heating oil supply for 5 days in July although the reason is currently unknown. The stoppage follows on from disruption to wholesale supplies from two other German oil refineries this month.

  • The Wesseling halt will take place from 20 July according to Bloomberg sources and will coincide with an ongoing halt to Bayernoil refinery until the end of July.
  • Gasoil Aug-Sep spread has rallied from around 1.5$/mt earlier today to 3.0$/mt while the Gasoil-Brent crack is up from around 20$/mt to over 21$/mt.
    • Gasoil AUG 23 up 0.9% at 756$/mt
    • Gasoil AUG 23-SEP 23 up 1.25$/mt at 5.75$/mt
    • Gasoil SEP 23-OCT 23 up 1.25$/mt at 3$/mt
    • Gasoil DEC 23-DEC 24 up 1.75$/mt at 34.75$/mt
    • EU Gasoil-Brent up 0.7$/bbl at 21.03$/bbl
    • US ULSD crack up 0.8$/bbl at 34.26$/bbl

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