Diesel spreads and cracks largely flat as US and EU runs increase and demand concerns intensify
Commentary summary:
• USGC TA diesel arb is only marginally closed but points at Europe over Latin America.
• AG/WCI diesel arbs will need some more widening of the GO E/W to point West again. AG/WCI jet arbs still point firmly West.
• Global diesel and cracks and spreads largely flat or decline slightly over the past week.
• Our key broader-picture aspect which is influencing the product market
• We could see some argument for ICE GO and HO spreads and cracks to gain in the very short term in order to pull AG/WCI diesel arbs West. But the medium term view after May’s ICE GO expiry is bearish.
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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