Middle Distillates
Distillates - Diesel
ICE GO spreads have largely been languishing in single-digits since December, with Feb expiring at +$1/mt.
Plentiful regional supply and open arb signals from the USGC and the EoS through Jan are keeping markets well supplied.
As turnarounds start, with AG/WCI arbs pointing East and arbs from the USGC largely shut recently, the risk is relatively to the upside now for Mar/Apr and beyond.
Distillates - Jet
Arbs from the East are all largely open into Europe, bringing supply with it come March and April.
Regrade strength in Asia is starting to cut off supply from the Far East, which is largely pointed to USWC for now.
