Gasoil ($/t)Monday 17 December, 2018

The fundamentals for kero / diesels improved last week with stocks falling and demand rising. Stocks remain below both the level seen last year and the five year average while demand continues to grow. However, the fundamentals typically weaken over the next few weeks as stocks rise and the Christmas holidays reduce industrial demand. As a result we remain cautious.

Gasoline (cents/g)Monday 17 December, 2018

The fundamentals for gasoline are stable with stocks increasing and demand edging higher. Stocks remain above the level seen last year and the five year average. Demand increased on the week but fell compared to the same period last year. As a result the days cover was little changed. Stocks should continue to rise during January and February while demand should bottom out in January. We remain cautious and further losses are possible.

Crude ($/b)Monday 17 December, 2018

US crude stocks are just 1mb below the level seen last year and well above the five year average. However, demand is also strong with total product demand up 5.5% on the year. Brent Crude is holding above support at $60/b and WTI Crude is holding above support at $50/b with the recent OPEC agreement to cut production providing a interim floor for prices. However, traders are worried about a global slowdown. As a result prices are struggling to rise. Therefore we remain cautious.