Brent surges amid bullish data

Brent surged Wednesday amid a raft of bullish with the International Energy Agency upping its global oil demand forecast and the US Energy Information Administration revealing a huge crude stock draw, healthy distillate draw, small gasoline build and a jump in US implied oil product demand.

The front month Brent contract was trading $2.38/b higher at 16.30 UK time than Tuesday.

The major oil products of gasoline, diesel, jet and fuel oil raced ahead of the crude markets on signs of recovery, improving refinery margins in a broad sweep.

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Gasoline premium unleaded barges in AR jumped $22/mt ($2.64/b) from yesterday.

But naphtha lagged behind the rally in gasoline, gaining $18.25/mt ($2/b) from yesterday, dragged down by the softening of propane, which has suffered after Saudi Arabia slashed its contract price this month.

European distillate futures also settled $18.75/mt ($2.51/b) higher than yesterday to raise the middle distillate complex. Diesel barges gained $18.50 ($2.48/b) as its discount below front month Low Sulfur Gasoil futures shed 25 cts/ton amid the rally.

Jet cracks jumped higher in Rotterdam, with the barges in and around Rotterdam trading at £20.50/mt above Low Sulfur Gasoil futures, pushing the flat price up $20.50/mt ($2.60/b).

At the bottom of the barrel, high sulfur fuel oil barges surged $16.75/mt ($2.64/b).