TTE - Diesel margins jump ~12% on reduced supply and rising demand

European diesel margins jumped Tuesday, as a confluence of factors led markets higher. Gasoil (diesel) margins in Europe rose to $36.84 per barrel, up $4.12 from Friday's close:  Russian diesel exports to Europe fell another 8% in May, are at their lowest level since October 2020, and ~250kb/d below January levels. Platts reported that independent Chinese refinery utilization fell ~20% year on year, and remained flat with April levels in May. State-owned refineries in China showed falling month on month, and year on year production, with May utilization coming in at ~73%. It was reported Tuesday that Mexico's 315kb/d Salina Cruz refinery is in the path of category 2 hurricane Agatha. German consumption data for March suggested diesel demand had recovered to pre-covid levels, though gasoline and jet fuel demand remain below 2019 levels. Helping to balance the market, Total (TTE) successfully restarted its Donges refinery in France. Although conflicting

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Diesel margins jump ~12% on reduced supply and rising demand