Eastern resid plunge at odds with a notable relative strengthening in Dubai market
Commentary summary:
• Eastern HSFO plunge has continued but Dubai’s relative strength creates a nice contrasting picture, both of which may yet have to converge.
• There are signs that the shortage in Western resid will soon ease (while heavier crude diffs also peaked a few weeks ago).
• This has GPW implications, and implications for lifting what has evidently been a very low Western diesel yield over the last few months.
Flat price is doing it’s thing this week with headlines in the driving seat, tariffs and sanctions some of the key topics.
However crude spreads are weakening, particularly Brent, rather than Dubai, which is slightly at odds with expectations in the market, including ours, over the last few weeks.
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