Products surge on increased demand

摘要

1. Light products shot higher and middle distillates were actually driving the rally that saw European crude markets approach the 100/bl mark. Basic fundamentals are driving the market, with cold weather increasing demand and low refinery runs cutting supply. 2. The rise in demand was clearest in the Mediterranean, as cold weather and heavy snow in Turkey, Greece and Syria boosted heating requirements. Syria is buying 15,000 b/d of March 0.7pc gasoil on top of its 85,000-100,000 b/d purchases under a first-quarter tender. Russian gasoil is trading at parity to diesel because of heating oil demand. Heating oil's premium to Russian Urals crude in the Mediterranean widened on increased demand (see graph).