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.
Sparta Market Outlook - Free Trial
Sparta’s Market Commentary is exclusively available within the Sparta Market Outlook app. To access a 21 day free trial of Sparta Market Outlook, please click the link below.
Market commentaries will be moving permanently into the Sparta Platform, alongside several new and exciting knowledge and insight features.
Book a demo to see how Sparta enables you to trade with conviction
