Kero and Diesel
Market Overview
Kero
North Asia and Singapore jet arb wide open to USWC.
Even Russia heard importing jet fuel from Japan.
Jet E/W still faces downside risk as Europe pulls more imports while Asia feels heavy with China set to export more jet fuel as well.
Diesel
Aug GO E/W currently sits within the bottom 3% of its range over the last 10 years.
This has definitively opened AG/WCI ULSD LR2 arbs into both NWE and the Med, putting a cap on any further gains in ICE GO spreads and cracks.
China’s potential increase in diesel exports with their resumption of crude buying could shed further weakness into the Eastern gasoil cracks.
