Dec/Jan ICE GO spreads will expire below those of Nov/Dec but will it be enough before Jan/Feb’s peak diesel demand?
Commentary summary:
– AG/WCI ULSD arbs open into Europe, whilst AG/WCI jet arbs remain closed.
– USGC MR ULSD arbs close into Europe for January arrival.
– Global diesel and jet cracks and spreads decline after the severe strength of previous weeks.
– Rumours abound of increased Chinese diesel exports in December.
– A serious Ukrainian/Russian peace deal is on the table.
– Bearish short-term diesel (December pricing), medium to longer term bullish. Jet to find a floor from here due to East Asian strength.
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.
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