Gasoil drop last week of $100 per MT has been completely absorbed by premiums of RME in Nortwest Europe that are now trading at +951 over ICE Gasoil. Spot demand for winter biodiesel seemingly creating terrific margins for producers that are now in excess of $200/mt. Back of the curve for RME is considerably less attractive but still quite positive. Although generally speaking other grades of Biodiesel were not impacted like RME and trading in such is muted. Also, Biodiesel crush Margin were widely impacted by the drop in diesel values of last week unless we see a correction in Gasoil values. Bean oil was little affected by all the commotion.
Perhaps the increase in OPS (basis) by Saudi on mineral crude on Monday will lift fossil fuel pricing but generally it would appear this will probably only result in a transfer of exceptional refinery margins back to origin. Heat cracks have dropped but we are still far away from normal levels as diesel inventories are low and EU sanctions against Russian products have just begun.