June/short term should be a positive month for ICE GO and HO whilst the increased flows into Asia should cap Singapore middle distillate derivatives
Commentary summary:
• USGC TA diesel arbs closed on the back of a widening HOGO.
• May’s ICE GO spreads settle at -$2 /mt. However, ICE GO and HO gain further down the curve.
• Asia Pacific turnarounds are peaking at present, with runs soon set to increase there, particularly with strong refining margins.
• Short term bullish ICE GO and HO whilst Singapore middle distillate cracks and spreads should find a ceiling.
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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