Crude tumbles, distillates crash lower
Brent crude oil futures tumbled Tuesday, with the front-month May contract shedding more than $2/bbl as fears about the impact of oil demand from the resurgence of Covid-19 was coupled with a rally in the dollar index.
Lockdowns have been imposed in many parts of Europe, and there has been a sharp rise in infections in India.
By 4.30 pm U.K. time May Brent was trading at around $62.30/bbl, down $2.05/bbl from the same time Monday.
The nearby curve also shifted to flattish, with June Brent trading at $62.32/bbl at the same time, reversing the previous backwardation.
European distillate futures outpaced the drop in crude, with the first four-month contracts settling $16.25/mt ($2.18/bbl) lower.
A stronger U.S. dollar also weighed on prices.
After starting the day at 91.84 points, the dollar index rallied to 92.33 points by 4.30 pm U.K. time.
Products
Gasoline premium unleaded barges in ARA were assessed at $580.25/mt, down $15.75/mt from yesterday.
The naphtha CIF cargo price fell $19.75/mt ($2.20/b), close to the levels of Brent losses.
Distillates took the brunt of the fall in Europe, with diesel and gasoil assessments dropping between $16.25/mt and $16.75/mt
Jet cargoes fell sharply, and the spread below barges widened to $3/mt.
The fuel oil market was mixed. High sulfur fuel oil barges in ARA fell $11.50/mt, while marine (0.5% sulfur) fuel, with its heavy blend of distillates, fell $17.25/mt.