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2026-04-06 18:36:34
[Asian Diesel Spot Premium Plunge by $10, East-West Spread Remains Firm at $250, Supply Disruption Concerns Remain] ⑴ Trading activity in the Asian diesel spot market rebounded on Monday, with the first physical transaction since March 24. However, the cash premium fell by about $10 to $60 per barrel, and both the spot and inter-month spreads narrowed. ⑵ The East-West spread remained firm above $250 per tonne, slightly lower than the previous trading day. Traders continued to worry that the near closure of the Strait of Hormuz was causing a slowdown in crude oil deliveries, thus limiting Asian diesel supply for the remainder of April. However, arrivals of crude oil from other sources in May and June are expected to provide some relief. ⑶ The cash spread for 10ppm sulfur diesel fell to $60 per barrel, while refining margins rose further to a near one-week high of $71 per barrel. Regarding jet fuel, more regional airlines announced flight reductions due to rising costs, and traders factored in the decline in demand this month. (4) Iraq's State Oil Marketing Organization (SOMO) has asked customers to submit crude oil delivery plans within 24 hours. Reports indicate that Iran has exempted Iraq from transit restrictions through the Strait of Hormuz, and Indian refiners have purchased Iranian oil during the Middle East conflict. (5) OPEC+ agreed on Sunday to slightly increase its May production quota by 206,000 barrels per day, but this increase remains largely on paper due to the inability of major member countries to increase production due to the war between the US, Israel, and Iran. Iranian drones attacked multiple targets in Kuwait, and the Kuwait Oil Company reported fires and significant material damage at some of its operations.
