European diesel markets are easing back from highs seen yesterday after rallying this month to the highest since March driven by refinery supply issues and supported by low inventories.

• The European Gasoil-Brent spread had risen from a low of about 13.5$/bbl in late April up to a high of 27.9$/bbl yesterday.
• Energy Aspects expect the European diesel crack to stay elevated with a lack of supply as Gasoil backwardation prevents a meaningful inventory build and with slowing imports due to key supplier maintenance and with an increase in seasonal US demand.
• ARA Gasoil stocks were last week reported at nearly 16 % below the five year average.
  • Gasoil AUG 23 down -1.9% at 808$/mt
  • Gasoil AUG 23-SEP 23 down -1.25$/mt at 6.5$/mt
  • Gasoil DEC 23-DEC 24 down -6.75$/mt at 48.75$/mt
  • EU Gasoil-Brent down -0.8$/bbl at 24.54$/bbl
  • US ULSD crack down -0.8$/bbl at 36.62$/bbl