With Russia’s invasion of Ukraine coming close to 1 year anniversary at the end of this month, the diesel market has mean reverted to levels seen this time last year. Diesel cracks remain $10+ from the seasonal range. (1/5)
Asian refinery runs of the 4 main countries (China + India + Japan + Korea) surged above 25MMBD only for the 3rd time ever. The December runs came in at 25.07MMBD (+0.4MMBD y/y) and just 0.1MMBD shy of the record high seen in Nov 2021. (2/5)
Aggregate Open Interest continues to surge in the new year. Especially for Nymex WTI which is now at the highest level since June 2022. Similarly, for Brent but they remain ~20% lower than the 2021 peak. In products, ICE Gasoil OI is hitting the highest OI since March 2022. (3/5)
India was the first country to report its 2023 demand numbers. Even though total January demand saw a m/m dip from the record high in December, it remains 6% higher y/y. Road fuels such as Diesel and Gasoline, they are up by 13-14% y/y (4/5)
Global oil and gas prices have converged to its narrowest level since August 2021. If we look at European Gas/LNG/Oil/Diesel, they are now in the range of $85-$110, with crude being the cheapest and diesel the most expensive (5/5)
The combined daily flights of the 3 biggest aviation routes (#China Domestic, #US Domestic and Regional Europe) continues to surge higher as it moves toward its stronger demand season. Looking at the Y/Y numbers in February, the combined routes are up ~7% with the bulk of growth coming from #Europe and China. Combined volumes are even higher than the preCovid peak of 2019 by ~4%. (Source: FlightRadar) (1/4)
Despite expectations of upcoming #ceasefire talks between Israel / Hamas, product freight has been structurally changed for the months to come. Tanker volume from #Suez continues to hover at low levels. (Source: Portwatch) (2/4)