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Jet Market Recovering While Europe’s Diesel Demand Remains Poor: Sparta

OIL PRODUCTS

The global jet fuel market has shown signs of recovery, but demand for diesel remains weak in several regions, Sparta Commodities analyst James Noel-Beswick said in a note cited by Bloomberg.

  • The recovery in the jet fuel market is reflected in improving differentials and spreads, with the market no longer looking oversupplied.
  • However, all diesel arbitrage windows into Europe remain closed except for those from the Red Sea and Canada’s East Coast, indicating a likely fall in Europe’s stockpiles.
  • Nonetheless, European diesel demand remains poor.
  • Singapore diesel spreads and cracks have declined in recent weeks, although stabilising in recent days amid ongoing refinery turnarounds in APAC.
  • US diesel demand also faces challenges amid economic softness and biofuel substitution, Sparta said.

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