OIL PRODUCTS: Gasoil Prompt Spread Falls but Spreads Strengthen After Feb23

Gasoil curve backwardation is strengthening beyond Feb23 with risks to global supplies following the start of the EU ban on Russian products from 5 Feb. Europe are expected to import 2.68m tons of diesel from Russian Baltic and Black Seas ports in January according to Bloomberg at the end of December. Refiners are boosting supplies in an attempt to build stocks ahead of the ban.

• The Jan-Feb spread is moving against the wider curve trend and declining from a peak at 25.5$/mt at the start of the week down to 16.5$/mt.
• The Feb-Mar up from a low of 16.5$/mt on 4 Jan to 31.5$/mt while Jun23-Dec23 is also rallying today.
  • Gasoil JAN 23 up 4.6% at 923.75$/mt
  • Gasoil JAN 23-FEB 23 down -1.75$/mt at 16.75$/mt
  • Gasoil FEB 23-MAR 23 up 5.25$/mt at 31.75$/mt
  • Gasoil JUN 23-DEC 23 up 10$/mt at 36$/mt
  • Gasoil DEC 23-DEC 24 up 5.75$/mt at 33.75$/mt

Source: Bloomberg