European Biodiesel Capped by Feedstock Anomaly as Distillate Tightness and Paper Hedging Diverge
Middle distillates tightened into expiry while biofuels remained constrained by feedstock pricing and risk management behavior. February U.S. heating oil traded near 2.67 dollars per gallon while February ICE gasoil traded around 703 dollars per metric ton, implying a heating oil premium of roughly 100 dollars per metric ton after unit conversion. ICE gasoil spreads stayed backwardated, with Feb Mar near plus 10 dollars per metric ton and Feb Apr near plus 25 dollars per metric ton, consistent with tight nearby distillate availability rather than structural scarcity.
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