Backwardation finally collapsing in Fame 0 with a drop of $75/mt overnight and premium trading down to +249 over ICE Gasoil in Northwest Europe. We were at +540 at end of last month - this is a drop of 54% in premiums while flat price is down $390/mt or 28%!! We see similar pattern with RME flat price down 27% and UCOME down 25.5%. Note that Gasoil this month was down only 4.6% while Bean oil was down 8%. Hard to understand the incredible backwardation still showing down the curve when you understand that Saudi have imported 2.5 Mil Barrels of Diesel from Primorsk with US blessing while much more still floating. All main port storages are full. We are definitely not at the bottom.
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