Asian diesel thirst offers support

摘要

Bucking the wider trend for refined products, middle distillates have experienced something of a global demand boom in recent months. Increased industrial activity in Europe has seen diesel demand firm and margins reach a two-year high, whilst extreme cold weather has whet the appetite for heating oil in the U.S. It is Asia, however, that has developed the greatest thirst for middle-distillates. Again, China leads the way in this respect. The country's diesel demand rose by 360 kb/d year-on-year in 2010, to an average of 3.2 mb/d, and reached a record high of 3.6 mb/d in December, a month in which China became a net importer of diesel for the first time in two years as it grappled with widespread shortages. All this has seen Asia-Pacific refining margins for middle-distillates rise steadily over the last twelve months, with the Singapore gasoil crack spread reaching its highest level since December 2008 in recent weeks.