ARA gasoil stocks have risen to a record level this week

The OSPs for the US were left unchanged, on the other hand, while those for Europe were actually lowered. Evidently the largest OPEC producer is still sticking with its strategy of defending market shares, as can also be seen from the latest production figures. The oversupply on the oil market is now also affecting oil products, especially middle distillates. 

According to PJK International, ARA gasoil stocks climbed by 185,000 tons this week to a record 3.368 million tons, notes Commerzbank. Distillate stocks have also risen sharply in recent weeks in the US, and meanwhile find themselves at a 3½-year high. For the time being, this should prevent the gasoil-Brent crack spread from widening, states Commerzbank.