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Gasoil (Diesel) backwardation spiking through April24 at $/MT108.50

No other way to state but "Houston there is a serious problem here" for Northwest Europe Diesel supply. This is not being helped by expected record low water on Rhine river at Kaub expected this week. This will maroon imports in the ARAG area as trucking will be only solution to supply depots all over Europe. This is of course going to affect Biodiesel premium initially but in a counterintuitive way as shortages of diesel means less supply overall and much less FAME blending demand. Am not a weather forecaster but it would appear that this high pressure dome lingering over Europe is not long lasting and wide spread rains could appear by end of week and perhaps will help Rhine River navigation by mid-September.

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