Gasoil futures surge to another record high

08 April 2008 10:06  [Source: ICIS news]

LONDON (ICIS news)--April's front month gasoil futures on Tuesday smashed Monday's previous record high trading at $1,017.00/tonne (€645.5/tonne) at 07:41 GMT on London's ICE, on strong crude oil futures, underpinned by OPEC's announcement that production levels will not be increased.

 

The April contract had opened at $1,006.25/tonne and touched a low of $1,004.50/tonne during the early hours.

 

The contract had settled at a record high on Monday of $1,004.00/tonne - the first time ICE gasoil futures had settled above $1,000.00/tonne.

  

As well as the OPEC announcement, a cold weather snap across many parts of Europe had led to stronger demand for gasoil, which is used for heating in many European countries.

 

Meanwhile, a fire at Neste’s Porvoo refinery has added to the high level of refinery maintenance shutdowns in Europe, which has reduced availability of middle distillate material in Europe, especially diesel, which was already tight.

 

The rise in gasoil futures on Monday also pushed physical middle distillate products upwards because the futures contract is used to price physical products. Diesel, jet kerosene and gasoil physical prices had all risen significantly by the close. 

 

($1 = €0.64)

By: Kawai Wong
+44 20 8652 3214

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