Gasoil Backwardation Erupts as Flat Price Snaps Higher — BOGO Collapses While BOPO Surges
The defining feature of today’s session was the violent extension of extreme backwardation in ICE gasoil, with the Dec/Apr spread blowing through +100/mt for the first time in years. As anticipated yesterday, such an unsustainably tight structure was bound to trigger a snapback in flat prices — and it did so with force. Gasoil rebounded above $785/mt, pulling the entire distillate complex higher and resetting biodiesel price relationships across the board. The result was immediate: BOGO collapsed back to +358, erasing the previous day’s strength, while BOPO continued its march upward to +150, propelled by firm bean oil and latent palm support.
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