Kero and Diesel
Market Overview
Kero
Continued higher run rates ex-China have provided the region with much more supplies than anticipated.
Thailand’s SRPC has also offered 10 kt jet A-1 into the market, which is one of the first cargoes out of the country since its oil export ban at the start of the crisis.
North Asia and Singapore jet arb wide open to USWC.
Jet E/W may weaken given the East seems amply supplied, whilst the situation in Europe could get tighter in the summer months (seasonal peak demand).
Diesel
Sikka barrels pointing East/WAF over Rotterdam for June/July/Aug loaders, but picture changes from September.
North Asian arbs are also marginally open into Singapore for July.
With supply flowing into the region from multiple directions, both GO E/W and Singapore diesel spreads outlook are bearish.
