Somewhat bullish case for diesel in the short term, despite stellar global refining runs
Commentary summary:
• USGC TA diesel arbs into NWE close whilst the margin between East and West for AG/WCI diesel arbs equalises.
• HO and ICE GO spreads gains decline over the past week whilst Singapore diesel spreads increase over the same period.
• China’s oil refineries roar back to life, processing hits two-year high in June.
• The declines in ICE GO should halt and join Singapore diesel spreads in increasing whilst there is probably more weakness to come in HO spreads and European jet pricing.
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
