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US crude draw indication buoys gasoil, BOGO spreads narrow

Unexpectedly strong US oil stock data from API rallied mineral oil markets late Tuesday, trumping fallout from Tuesday’s deal to ease sanctions on Iran and stimulate the country’s flow of oil exports, trimming BOGO spreads. API reported a 7mn bl US crude oil stock draw, indicating stronger refinery demand, although Cushing and gasoline stocks were both reported building with gasoline cracks still strong. Front month ICE gasoil has lingered in the mid-$530s/t since late yesterday. Expectations for this afternoon’s DOE stock data inventory meanwhile point towards a far smaller 1.2mn bl crude draw, with accompanying builds in stocks at Cushing and in distillates and gasoline. Soybeans and soy oil both softened on Tuesday after rallying post-WASDE on weather and upgraded US demand. Chinese bean demand also looks strong, with domestic Q4 crush spreads up following June’s 32% MoM import jump.

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