Brent Sinks, Washington to Raise US Diesel Output

In the news, US Energy Department Secretary Kyle Haustveit stated today that diesel prices are higher than anyone would like, saying Washington is working with refiners to raise output. Speaking in Pennsylvania, he said the department is looking for "new and innovative ways" to push more diesel through refineries. Haustveit added that the Trump administration is also coordinating with allies on diesel releases, including an arrangement with Europe to free up another 50mb. Relatedly, Secretary of State Marco Rubio told reporters today that he plans to urge Reliance Industries to refine more Venezuelan crude at its Indian refineries and potentially begin oil production in Venezuela. His visit comes days after Trump waived potential sanctions on the top buyers of Russian oil, including India, a move likely to help pave the way for a US-India trade deal. During the two-day trip to Mumbai and Jamnagar, Rubio is set to meet Foreign Minister S. Jaishankar and Reliance chairman Mukesh Ambani, whose company runs the world's largest refining complex. Elsewhere, Asian refiners are looking for ways to lower feedstock costs as freight rates stay near record highs, including using smaller tankers, relying on vessels under long-term charter, and buying Middle East crude. In other news, IEA Executive Director Fatih Birol announced today that the agency stands ready to coordinate additional emergency oil releases if member countries decide they are needed, even as it works to speed up diesel releases under existing plans. Speaking in London, Birol said, "if our countries consider it's time to push the button," the IEA is ready to go. Last week, the agency announced it would accelerate release of the crude and product volumes pledged in March, including more than 20mb of diesel. Birol called a diesel release a priority, with timing depending on individual countries and market conditions, and said that the IEA is trying to front-load those deliveries, though he gave no specific timeframe. Finally, at the time of writing, the front-month (Dec/Jan’27) and 6-month (Dec/May’27) Brent futures spreads are at $3.66/bbl and $14.67/bbl, respectively.

Volatile afternoon, with the Dated complex sliding into the window before reversing sharply back to last night’s levels, Nov'26 Dated bouncing from $109.00/bbl to $111.80/bbl. Nov'26 DFL slipped to $6.00/bbl before rallying to $7.18/bbl despite real selling all the way up; $7.00/bbl at the end of the window and last $7.30/bbl. Dec'26 DFL fell from $5.13/bbl to $4.63/bbl before rebounding to $5.18/bbl, while Jan'27 DFL dipped from $3.55/bbl to $3.17/bbl despite buying and recovered to $3.50/bbl. Dec/Feb'27 DFL was sold at $2.20/bbl post window, and Nov/Dec'26 DFL held between $1.40/bbl and $1.58/bbl despite buying.

During the window, a producer and $2.00/bbl Majors were offering cargoes along the curve in Midland, alongside a Major’s Oseberg offer. Towards the end, a European Major lifted an offer above the Midland curve, accelerating the reversal. In the days market, 16-20 Nov'26 daily DFL was sold at $6.00/bbl and traded $6.15/bbl by the end of the window. Pre-window, Dated 14-18 Dec'26 was bought at $107.70/bbl and 13-19 Nov'26 v 04-10 Dec'26 at $3.48/bbl; post window, 16-20 v 23-27 Nov'26 was sold at $1.40/bbl.

Low sulphur weakened in both regions this afternoon, Nov/Dec'26 380 traded at $30.75/mt for the majority of the afternoon but sold down on screen to $29.75/mt just before the window, Dec/Jan'27 similarly traded down 65c to $30.75/mt just before the window. Nov'26 Sing crack was better offered and traded in large volume this afternoon, it briefly traded up from $24.90/bbl to $25.20/bbl in the early afternoon before getting offered back down on screen and finding support at $24.90/bbl until the lead into the window where it traded down to $24.70/bbl, it continued to trade lower post window and last traded at $24.25/mt. Liquidity improved again on Euro spreads but they still remained thin, Nov/Dec'26 sold off from $14.50/mt to $13.50/mt while Dec/Jan'27 shed 75c to $12.75/mt. Nov'26 Euro crack was better offered trading down from $0.80/bbl to $0.50/bbl pre-window, it traded down another 10c to $0.40/bbl, Nov'26 0.5 E/W traded between $153.00/mt and $154.00/mt.

After a very strong few weeks, real selling caused the 380 complex to continue to sell off heavily this afternoon, Nov/Dec'26 380 struggled to find any support in the early afternoon trading down from $56.00/mt to $51.00/mt, it continued to sell off bottoming out at $48.00/mt pre window, it rallied to $52.75/mt in the window. Dec/Jan'27 was more resilient, it initially traded down 3 dollars to $31.00/mt before rebounding back to $34.00/mt in the window and to $34.75/mt post window, Nov'26 380 crack also lacked any real support pre window getting offered down on screen from $10.00/bbl to $6.70/bbl, it found some buying here and was bid back up to $8.00/bbl and traded at this level in the window before getting offered back down to $7.00/bbl post window. Barge spreads saw better liquidity this afternoon, Nov/Dec'26 was better bid in the early afternoon trading up a dollar to $20.00/mt before selling back down to $19.00/mt before the window, Dec/Jan'27 similarly traded up and then back down a dollar from $18.25/mt to $19.25/mt. Nov'26 Barge crack traded 30c higher from -$10.10/bbl to -$9.80/bbl in the window, Nov'26 380 E/W traded down from $123.50/mt to $107.50/mt where it bottomed out, it has rebounded slightly to $109.00/mt.

This afternoon in distillates, Sing gasoil spreads sold off on lower ICE gasoil, with Nov/Dec trading from $3.30/bbl down to $3.10/bbl, while Nov E/W was well supported, trading from -$129/mt up to -$118/mt. Regrade saw combo selling in Q1 and Q3, with Q1 regrade selling down to $2.45/bbl.

Prompt ICE gasoil spreads sold off overall, Nov/Dec trading from highs of $51.75/mt down to $49/mt, while Dec cracks sold off to $79/bbl before finding support, recovering to $80.10/bbl last. European jet saw sell-side interest, with Nov hit down to $123/mt, while the Nov/Dec box was hit to lows of -$5/mt.

This afternoon in gasoline, MOC touch better bid. EBOB weaker, seeing the Nov'26 crack trade down from this morning’s levels of $20.50/bbl in Nov'26 to $19.50/bbl end of window, with buying in the Dec'26 arb at $13.00/bbl from a trade. Q1'27 EBOB cracks pricing lower with interest still sell side, seeing selling down to $19.15/bbl with RBBRs continuing to trail lower this afternoon, with Dec'26 down to $18.50/bbl end of window. Some refiners buyside of 92 flat price this afternoon seeing E/W higher on thin Eastern liquidity.

This afternoon in naphtha was mixed, with spreads were initially bid before going illiquid as Brent spreads came off pre-window. NWE naphtha cracks recovered on lower Brent, with Nov'26 rebounding from -$5.15/bbl early afternoon to -$4.80/bbl; Q1'27 finished at -$6.20/bbl, Cal 27 at -$8.00/bbl, while crack rolls firmed, with Nov/Dec'26 up 20c at $0.70/bbl and Q1/Q2'27 trading between $1.80/bbl and $1.90/bbl. Spreads gave back the early rally, with Nov/Dec'26 falling from $36.00/mt to $33.50/mt and Dec/Jan'27 from $22.25/mt to $20.00/mt pre-window. Front E/W was choppy, with Nov'26 falling to $70.00/mt, bidding to $73.50/mt and ending at $71.50/mt, while Q1'27 held at $55.00/mt; boxes priced up, with Nov/Dec'26 at $2.50/mt and Dec/Jan'27 + Dec/Mar'27 at $10.25/mt and $19.00/mt, respectively. MOPJ cracks were also mixed, with Nov'26 recovering from $2.80/bbl lows to $3.10/bbl after reaching $3.35/bbl earlier, while Cal'27 was -$3.35/bbl post-window. Spreads softened pre-window but remained thin thereafter, with Nov/Dec'26 at $36.00/mt and Dec/Jan'27 at $30.00/mt.

This afternoon in NGLs, FEI spreads were very choppy; selling off aggressively at the open before rebounding with crude into the European close. Nov/Dec'26 FEI opened at $33.50/mt, traded down to $32.00/mt before rallying again to close at $35.00/mt. Q1/Q2'27 FEI was also weaker trading at $111.00/mt with trade house buying interest at those levels versus $114.00/mt this morning.

FEI/CP was much weaker this afternoon, with the Nov'26 FEI/CP trading at lows of $198.00/mt before rebounding slightly to $204.00/mt.

The arb ripped upwards across the curve with Q1'27 LST/FEI traded at -$275.00/mt post US window before peaking at -$268.00/mt during the European Window. This is compared to -$285.00/mt this morning. The Dec'26 arb traded at -$300.00/mt up from -$322.00/mt around lunchtime. However, by the European close, it had given back some of its gains with the Dec'26 LST/FEI trading back to -$315.00/mt.

LST structure was stronger at the US open trading at 1.375c/gal before falling to 1.25c/gal. There were trades and fund selling of the Dec/Jan'27/Feb'27 LST fly at 0.25c/gal, which helped keep the front of the curve firm.

Butane was initially strong into the open with Nov/Dec'26 Butane trading at 8.00c/gal and peaking at 8.25c/gal before falling back town to 7.50c/gal to close.
There was also fund and Eurotrader interest in the C3/C4 CP, which traded at -$57.00/mt before rising to -$55.00/mt. The Nov'26 C4 CP/MOPJ traded in size at -$180.00/mt.