Chemicals Updates

European Diesel Daily Market Analysis / Regrade strengthens amid high diesel inflows / Diesel market expected to tighten in autumn

Aug 11, 2025

The European diesel market strengthened slightly to end the week Aug. 8. The front-month August ICE LSGO futures contract rose $5.75 on the day at $676/mt, while the prompt August/September spread widened 75 cents to be in a $5.25/mt backwardation. The Northwest European ULSD cargo differential to LSGO futures was unchanged day over day at $8/mt, while its Mediterranean counterpart edged 25 cents/ mt lower to $12.25/mt. The European jet fuel regrade has strengthened due to strong summer aviation demand and relatively low stocks, while the European diesel market has seen inflows increase massively in recent weeks amid high US exports. The jet fuel crack was last at a discount of 64 cents/b to the diesel crack on Aug. marks the spread’s highest level since June 17, when it was...

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