Widening negative gasoil EFS set to increase East-West arbitrage flows

The March gasoil Exchange of Futures for Swaps spread has widened in recent trading sessions to a more-than-six-year low and would likely increase the flows of Asian barrels to the West, further tightening already lean supply balances in the region. The EFS is the spread between front-month Singapore 10 ppm sulfur gasoil swaps and the corresponding ICE low sulfur gasoil…