Margin Squeeze Deepens as Gasoil Breaks $600—Market Copes with Diverging Biodiesel Signals
ICE Gasoil futures plunged below $600/mt today, extending a month-long decline now totaling over $70/mt. The gasoil curve continues to collapse despite tight crude spreads, highlighting the weak middle distillate demand. This persistent sell-off not only drags on the BOGO and POGO spreads—now at $472 and $310 respectively—but also exposes how sensitive the biodiesel margin structure remains to underlying fossil benchmarks. The July screen biodiesel margin, calculated against expiring May heating oil, is now -40 c/gal, underscoring continued financial pressure on U.S. renewable diesel and FAME producers.
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