ICE Gasoil prices which started rising aggressively at the back-end of February 2022, have started to loosen up, with a 6% drop in the front month April (J22) contract (representing 100 metric tonnes of low sulphur gasoil for physical delivery) and a 5.5% drop in the adjacent contract, May (K22).
Volumes for April are just over 30K and for May just under 20K.
Over the last two years we have been used to seeing Gasoil front month futures trade at around the 500 to 800 mark, with recent events pushing it to a peak of 1522 USD per metric tonne. This has led to a daily 25% drop in the front month contract on 10 March 2022 as the market struggles to sustain such aggressive gains.
As might be expected, similar to the crude curve, the gasoil futures curve is backwardated. The spread between adjacent contracts in the first three futures months is about $40 per metric tonne.
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