The winter of diesels

Diesel stockpiles globally continue to be the focus of many market participants, as ARA stocks were depleted last week by 1.4 mb, while Singapore and Fujairah stocks dropped by 0.1 mb and Singapore built by 0.6 mb. ARA middle distillate stocks are particularly at risk of dropping below 18 mb, which could send time spreads higher at the prompt as we saw in 2020. Still, after EDF’s disclosure of new nuclear outages for the winter, CIF NWE gasoil prices were bid by market participants. The expected utilization rate of diesel power plants and backup generators was revised markedly higher for this winter, with a now substantial number of hours deemed at physical risk under slightly adverse weather scenarios.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

February 10, 2022

US inflation rate expected to rise above 7

There is decidedly little happening in the markets this week apart from a fairly sharp rebound in equities, buoyed by strong corporate results, but that…
January 13, 2021

Prices extended gains

Prices increased again significantly yesterday in most European gas markets, still supported by strong residential demand and relatively weak supply amid very bullish Asian power…
January 26, 2022

Markets very nervous before the Fed

Another stock market session marked by very high volatility yesterday. US stocks repeated Monday’s pattern (plunge then rebound), but ended up falling back. The Nasdaq…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!