Gas Oil 1 year $/TonneMonday 29 June, 2020

The fundamentals for kero / diesels weakened last week with stocks rising and demand falling. As a result the days cover increased by 1.3 days to the third highest seen over the last week. Although demand is increasing for road fuel, demand for Jet Kero remains weak and ARA distillate stocks remain close to record highs. In addition about 100 tankers parked as floating storage in the North Sea at holding locations north east of London and near Rotterdam. With the ICE Gas Oil looking toppish the risks are moving to the downside.

Gasoline 1 year $/TonneMonday 29 June, 2020

The fundamentals for gasoline continue to improve as we head towards the peak week of the "4th July" with stocks falling and demand rising. Demand increased by 9.37% last week in the US and in the UK road fuel demand is reported up 7%. However, gasoline prices are looking toppish and struggling to hold at the higher levels with NYMEX RB Gasoline testing support at 120c/g. and ARA Eurobob E5 testing support at $350/t. As a result the risks are moving to the downside.

Crude 1 year $/TonneMonday 29 June, 2020

US crude increased by 1.4mb on the week but demand increased by 1.058m bpd resulting in a fall in the days cover of 1.7 days. However US crude production rebounded by 600,000 bpd. About 400,000bpd is due to restarts after a storm but about 200,000 looks like shale restarts. In addition a Texas FED report indicated most Texan oil companies were planning on restarting wells between now and the end of the summer. As a result crude prices are looking vulnerable for a correction lower.

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