A bearish outlook for ICE GO and Singapore diesel contrasts with a bullish one for HO and jet

29 January 2025 Time to read:  minutes

Commentary summary:

  • USGC TA diesel arb opens briefly and points to Europe.
  • AG/WCI diesel and jet point East but more convincingly in the case of jet.
  • HO complex and Singapore regrade have priced up over the past week whilst ICE GO flatlines and Singapore diesel comes off.
  • AG & WCI diesel and jet loaders may well transit once more via Suez very soon.
  • Bearish on ICE GO and Singapore diesel whilst European jet and US diesel feel more bullish.

The global middle distillate markets have exhibited sharply divergent movements across regions this past week, necessitating a closer look at those of the US, Europe, and East Asia individually. Despite these differences, one unifying feature remains: Though there was a large move up in crude structure in the 2nd half of January and product cracks tend to follow if cracks are remain stable.

Crude Book a Demo

James Noel-Beswick is Commodity Owner for Sparta. Before joining Sparta, James worked as an analyst for likes of BP and Shell and leads our continued development of the distillate product vertical.

 

Sparta Market Outlook - Free Trial

Sparta’s Market Commentary is exclusively available within the Sparta Market Outlook app. To access a 21 day free trial of Sparta Market Outlook, please click the link below.

Market commentaries will be moving permanently into the Sparta Platform, alongside several new and exciting knowledge and insight features.

Book a demo to see how Sparta enables you to trade with conviction

general-cta-graphic
general-cta-graphic