Front month calendar spreads show that Friday's selloff hit crude harder than products. That being said, hedge funds likely continued to liquidate long positions in ICE gasoil, after selling 6,200 contracts in the week ending November 15th.
US gasoil inventories have reached record lows on several occasions this year, giving sustained support to refining margins and retail prices. Current stocks are at the lowest level at the end of October for over 40 years, and yet the US continues to export to Latin America.
European road fuels demand to perform better than the last two, pandemic-plagued, years with European governments shying away from re-introducing movement restrictions this fall. However, diesel demand is not going to benefit much from this, as manufacturing activity across Europe is going through its worst month since the start of the pandemic.