top of page
Writer's pictureHenri Bardon

Backwardation finally breaking - just beginning?

Gasoil Feb/Sep drops $30 mostly in front of curve to +$99 per MT while Soybean oil now in -22 contango through May. Premiums in South America for Soybean oil remain under pressure with no trades but many offers for Apr/May at -1100 while bids are -1280!

FAME in Northwest Europe trading at $140 discount to BOGO indicating that market demand remains under pressure for Biodiesel (a mandated additive). Also, Sustainable Aviation Fuel (SAF) pricing in Rotterdam $3307/MT is also dropping while Jet fuel A1 remains at $1200 - this is the narrowest I have seen this relationship which is usually >3X. Even US RINs under pressure as Courts issue stay for Small Refinery Exemptions - undermining recent action by EPA on RFS.


5 views0 comments

Comments


bottom of page