ULSD Market Snapshot – 2 September 2025

ULSD Market Snapshot – 2 September 2025

Northwest Europe (CIF ARA): ULSD 10ppm was assessed at $714.50/mt, up $18.75/mt day-on-day. FOB NWE cargoes closed at $705.75/mt, reflecting sustained strength in European middle distillates.

Mediterranean (CIF Genoa/Lavera): ULSD 10ppm stood at $721.00/mt, up $18.25/mt, while FOB Med cargoes traded at $710.00/mt, also up $18.50/mt. The Med remains at a slight premium to NWE, underpinned by firm regional demand and constrained clean tanker availability.

Global Context: The rally in ULSD follows refinery disruptions across Europe and West Africa. Platts reported unexpected outages at Dangote’s FCC unit in Nigeria and extended maintenance at Shell Pernis (Rotterdam), both of which reduced prompt availability of middle distillates. Traders noted that despite Dangote’s outage, product remains in tanks, limiting near-term shortages.
Spreads & Differentials: The gasoil 0.1% market tracked higher alongside ULSD, with Med cargoes assessed at $710.25/mt. The ULSD MOPL differential also firmed, reflecting bullish paper market sentiment.

Futures: ICE Gasoil September contracts settled at $703.50/mt, with forward months easing slightly (October $698.75/mt, November $686.00/mt), indicating backwardation in the curve.

Macro Drivers: Brent futures traded around $68.81/bbl (Nov), offering stable feedstock costs. The European diesel complex continues to price in strong road transport demand post-summer and ongoing tightness in the gasoil balance.
Summary:

ULSD prices across Europe surged by nearly $19/mt on 2 September, marking one of the strongest daily gains in recent weeks. Mediterranean values remain firm at a premium to NWE, supported by robust demand and refinery outages limiting supply. Backwardated futures suggest near-term tightness but potential easing into Q4 as refinery runs normalize.
#drakensbergenergy #ULSDMarketSnapshot #Diesel #EnergyTrading #Platts #refinedproducts