Middle distillates are accumulating in Europe in floating and onshore storage. Diesel demand is low, and record distillate stocks are likely to drag on the market in the fourth quarter, barring a colder winter than usual.Sluggish prompt demand has deepened the gasoil market's contango - with spot prices moving to wider discounts to forward deliveries. Despite this, prompt gasoil crack spreads have moved to an unusual premium to crack spreads for December, when winter demand nears its peak (see graph).
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