1 Mar 2021

JBC in the Media - OPIS

Bullish Momentum in Low Sulfur Gasoil Futures, Options Stalls: ICE Data

"'Distillate pricing heading higher on lower net speculative length tells us something about the bullishness of the market at the moment, and it is a bullishness we can't fully get behind,' said Philip Jones-Lux, energy market analyst with JBC Energy. 'Extreme temperatures in PADD-3 have helped cull some supply from both crude and products markets, but the support is likely to be temporary.'"

"'We expect almost 2.5 million b/d of supply to return in April, but the market appears to either have a lower figure in mind, or a stronger demand outlook,' noted Jones-Lux.

'Given that our demand outlook is among the more bullish, we would posit that the market might be a bit taken aback this week at just how much OPEC+ supply does return through the second quarter.'"