not much noticed but Aug/Oct ULSD on ICE expired at -13.50/MT. NWE demand definitely an issue at the moment while supply ample as arbitrage from Asia open to West. China diesel exports for first half Aug already at 100Kt bpd while for all month of July were at 165kt bpd. Aegean STS of Russia gasoil also resuming totalling 3.5 mil MT per month. Screen Heat crack remains very healthy at >$22/brl. Gasoil chart still very resilient despite its ugly technicals staying above $700 with contango in front but ICE Gasoil Oct/Dec showing +7.5 backwardation. Not easy to trade. Biodiesel in NWE has not moved much except FAME margin improved again as Soyoil price discount to Rapeseed oil increased by $22/mt overnight. Barge freight in ARAG remains firm as Rhine river water continues to drop in its usual seasonal pattern.
Comments