Diesel crack spreads have fallen to a one-month low again, now roughly around $26.3 per barrel for spot spreads, and refining margins are also being squeezed very low, closing at about $49. Looking like the window quotes have been lowered again.

Interestingly, opinions on supply vary across regions. Some refineries in Northeast Asia plan to increase processing rates next month due to higher crude oil feedstock, but some companies haven't secured enough crude supply. Meanwhile, Australia's April diesel imports are expected to increase by 50% month-on-month, which is also putting downward pressure on diesel prices.

On the other hand, jet fuel has supported some trading sentiment. With the global summer peak demand approaching, jet fuel supply is becoming increasingly tight. Singapore recently closed two jet fuel deals, but no one is taking on diesel. The price gap between East and West has been fluctuating recently and is quite unstable.

For fuel oil, both high sulfur and ultra-low sulfur spot premiums have narrowed, with the Hi-5 spread significantly tightening to about $47 per ton, mainly because low sulfur fuel oil has fallen more sharply than high sulfur. Naphtha prices continue to decline, with vessel cargoes in the second half of May dropping from $1,135 to $1,088, compared to Brent crude's premium of $129. As for gasoline, it has retreated from a multi-year high of $124.10 to around $119. This adjustment still depends on the situation in the Strait of Hormuz.