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Products futures: Gasoil prices outpace crude

  • Mercados: Oil products
  • 07/02/23

Ice gasoil futures values gained ground this morning, outpacing Ice Brent crude.

The front-month Ice February gasoil contract was trading at $819.50/t at 13:23 GMT, higher from $781.75/t on 6 February. The second-month Ice gasoil March contract was at $814.75/t, rising by $36.75/t over the same time period, indicating easing backwardation as the market is currently well stocked, following the last-minute rush for Russian diesel cargoes.

The front-month Ice April Brent contract was trading at $81.84/bl at the same time today, higher by $1.61/bl over the same timeframe. Ice February gasoil's premium to Ice April Brent subsequently widened to $28.02/bl by 13:23 GMT, from $24.56/bl at the close on 6 February.

Trading firm Gunvor is shutting down its 100,000 b/d Ingolstadt refinery in Bavaria, Germany, on 8 February for planned maintenance, with operations due to restart progressively between late March and the middle of April. Bayernoil's 87,000 b/d Neustadt refinery will undergo a four-week shutdown from 20 February, while its 120,000 b/d Vohburg plant continues operations. Maintenance at the two facilities could tighten supply in the region. Diesel and heating oil prices have increased over the past two weeks, which could indicate increased demand ahead of the shutdowns.

Trading volumes on the front-month gasoil contract were 7,786 by 13:32 GMT, and 49,320 on the second-month contract.

US products also traded higher this morning. The front-month Nymex February Rbob gasoline contract was trading at 242.58¢/USG at 13:23 GMT, higher by 5.24¢/USG from the previous close. The front-month heating oil contract traded at 283.42¢/USG, rising by 6.55¢/USG over the same time.


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