Global diesel’s bullish run seems set to continue for at least the short term
Commentary summary:
• All major diesel arbs are closed into Europe, whilst jet is the opposite with even North Asian jet arbs workable into Europe.
• Global jet spreads, cracks and diffs are flat or declining whilst global diesel pricing surges over the past week.
• The light crude slates and lack of resid at the moment appears to be hampering global diesel production.
• Diesel’s strength feels like it has a while to run, but will we build enough diesel stocks before Q4 maintenance and the start of winter?
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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