European Diesel Market Shows Signs of Tightening

Market spreads and futures prices signaled at the end of this week a tightening in the European diesel market, on the back of closed or restricted arbitrage opportunities for supply from both the United States and the Middle East.   The prompt gasoil futures on the ICE exchange jumped to a premium over the next-month futures contract intraday on Friday, from a discount at Thursday’s close, according to data compiled by Bloomberg. This market structure, backwardation, suggests increased immediate demand for a commodity compared to…