Global diesel and jet still appear bullish, with ongoing strength in East Asia seeping West
Commentary Summary:
– ULSD and jet arbs closed into Europe whilst those into Singapore from North Asia (LR2) are open.
– Pretty much all global distillate pricing moves up dramatically over the last week. Only things to slip are the HOGO and Singapore regrade.
– Last week saw enhanced anti-Russian sanctions announced.
– Chinese distillate exports to remain low into the rest of Q4.
– Bullish ICE GO and HO spreads and cracks with some argument could be made for a ceiling in Singapore middle distillate pricing and the GO E/W. However, reduced Chinese distillate exports remains a persuasive caveat.
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 Knowledge Free Trial
Sparta’s Market Commentary is now exclusively available within Sparta Knowledge. Access a 30 day free trial to explore curated insights, live prices, and expert calls.
Market commentaries will be moving permanently into Sparta Knowledge, alongside several new and exciting knowledge and insight features.
Book a demo to see how Sparta enables you to trade with conviction
