The market turns increasingly bearish, whilst the medium term outlook has some positivity, but will we need run cuts as an additional solver?

In our latest distillate market commentary:

> August arrivals into the EU for gasoil are extremely large

> Increasing diesel demand and economic worries lead funds to increase their bearish positions

> Low Chinese product demand leads Sinopec to announce 2nd half 2024 run cuts

> The short term remains bearish but maintenance and increasing run cuts should provide a floor in the medium term

> However, any recovery to be rangebound and any rally in the next 1-2 months will likely be another opportune moment to once again sell