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Heat crack now under $30/Brl as Gasoil trades well below 200wma

Gasoil now trading well below 200wma with 20wma about to cross it. Situation in Europe remains on edge of catastrophe with strikes in France and even Germany. May holidays are upon us and we can expect slower Chinese demand this coming golden week. Biodiesel in Europe rebounded on Thur only to fall back again on Friday trading at average of the month levels after trading $20-50/MT higher previous day. News of large exports from China of UCOME to Europe in Q1 to levels that are 2X larger (658kt) than 2022 shattered the relative peace in an already contentious issues surrounding possible fraud in advanced category material. China is on pace to export close to 5 mil MT of both UCO and UCOME combined remaining the dominant player in this category of waste biodiesel. There is little doubt that these Chinese exports are having significant effect on the collection of waste oil especially in Europe and may cause some sort of political action at some stage this year to protect domestic EU waste oil collectors and manufacturers.

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