In our latest distillate market commentary:
> AG/WCI arbs are now directing barrels towards Europe despite the longer journey via the Cape
> Whilst global cracks and spreads have softened this week, the decline is more pronounced in East Asia than in the Atlantic Basin, although they all remain historically high
> Reports indicate both issues and Ukrainian attacks at several Russian refineries resulting in a decrease in Russian diesel exports as we near Russian harvest season
> Diesel stocks in the US Midwest (PADD 2) have surged, causing minimal pipeline flows from the US Gulf Coast in recent weeks
> To facilitate the opening of the USGC TA arb, Europe (or the US) will need to narrow the HOGO in the short to medium term
