7 Jun 2021

JBC in the Media - OPIS

Net Length in European Distillate Futures, Options Build to 32-Month High

"'European distillates being bullish is something we are likely to hear plenty about over the next few weeks. Demand is continuing to recover gradually, and the once-steady flow from surpluses in the U.S. and Asia is being held up by a tighter distillate balance in the U.S. and internal problems in India,' said Philip Jones-Lux, an energy analyst with JBC Energy.

'Although Europe on its own is not necessarily tighter than normal in terms of its middle distillate balances, North America and Asia certainly are currently. This is likely to ease somewhat once we get into the third quarter, however, so there is likely a hard ceiling on European distillate after the next couple of weeks of likely gains,' Jones-Lux added."