Gasoil super contango predicted

Gasoil super contango predicted

The uncertain outlook for the gasoil market ahead of IMO’s 2020 sulphur cap forms the main research in the latest weekly report from Alphatanker.

Although the past few months have seen spreads between gasoil and HSFO narrow, Alphatanker analysis suggests that they should once again widen over the second quarter of this year following projected shifts in global fuel oil and gasoil demand and as crude prices strengthen, potentially leading to a super contango in gasoil markets, which could support floating storage.

Alphatanker projected a surge in east – west gasoil trade, which has the potential to support rates for LR product carriers.

“But once again, much depends on how much demand is ‘cannibalised’ by newly delivered VLCCs and suezmaxes,” Alphatanker warned.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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