The outlook remains neutral to bullish but the end of European turnarounds is approaching
Commentary summary:
– USGC TA diesel arb closes further on the back of drawing US diesel stocks.
– Cracks continue to largely increase over the past week whilst spreads flatten or even decline.
– Today (Wednesday April 2nd 2025) sees the announcement of the next tranche of US tariffs.
– We remain largely bullish but the most important arbs are only marginally closed so a turning point should be around the corner.
Despite what was written in last week’s commentary, “Given the continued impact of regional turnarounds and a tightening supply outlook, we maintain a bullish stance on Singapore diesel and jet pricing into the medium term.”
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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