ICE front-month MOPAG oil products open interest shrinks 67.95% MOM in March

The total open interest for front-month April Mean of Platts Arab Gulf middle distillate swaps contracts on the Intercontinental Exchange fell 67.95% month over month to 1.085 million barrels in March, the latest ICE data showed April 6.

The largest decrease was seen in open interest for front-month April FOB Persian Gulf gasoil swap contracts that fell 59.92% month over month to 1.075 million barrels in March, ICE data showed.

The decline in the front-month gasoil swap contracts' open interest followed the Middle East war, which triggered a global oil supply crunch.

"Any contract [for middle distillates] inside Hormuz is being force majeured on," a Middle East-based gasoil trader said.

Due to the supply shortage, cash differentials of ultra-low sulfur gasoil cargoes from the Persian Gulf jumped multiple fold on the month, from $2.57/b in February to $26.37/b in March, Platts data showed. The cash differential reached an all-time high since the assessment's launch in April 2015, at $49/b, the data showed. Platts is part of S&P Global Energy.

The shipping disruption at the Strait of Hormuz also caused the front-month gasoil exchange of futures for swaps -- the spread between Singapore 10 parts per million sulfur gasoil swaps and the corresponding Intercontinental Exchange low sulfur gasoil futures contract -- to rally to a record high of plus $77.21/mt March 31.

The gasoil EFS spread is closely watched by market participants as an indicator of East-West arbitrage economics, and a less negative spread points toward arbitrage becoming less economically lucrative.

Swing barrels from India had been diverted to Asia after the arbitrage incentive to Europe remained shut, with India having shipped 67% of its diesel and gasoil to Southeast Asia in March, according to S&P Global Commodities at Sea data.

The Platts-assessed FOB Fujairah gasoil cargo price averaged $169.34/b in March, up from $86.89/b in February and $80.23/b in January.

There was no open interest for front-month April FOB Persian Gulf jet fuel/kerosene swap contracts, a first since Platts began tracking the data in July 2025.

The lack of liquidity for the front-month April FOB Persian Gulf swap contracts mirrors quiet physical market activity, as flows through the Strait of Hormuz remain restricted amid the Middle East war.

For the jet fuel market, the Strait of Hormuz is an especially vital waterway for outflows from the Middle East, as 86% of all jet fuel products are loaded in the Persian Gulf.

"Not many people are showing anything, and not everyone can lift cargoes from Sohar and Duqm," said a regional jet fuel trader.

The Platts-assessed FOB Persian Gulf jet fuel/kerosene front-month swap crack spread against front-month Dubai swap -- a measure of the product's relative strength to the crude from which it was refined -- averaged $61.23/b in March, widening from an average of $15.99/b in February. At the 0830 GMT April 6 Asian close, the crack spread stood at $63.70/b.

The Platts-assessed FOB Fujairah jet fuel/kerosene cargo price averaged $178.59/b in March, up from $85.74/b in February and $80.40/b in January.

The Platts FOB Fujairah assessments for middle distillates were first published on Oct. 3, 2016.

Light ends open interest halves

In light ends, the open interest for front-month April MOPAG naphtha swap fell 58.49% month over month to 88,000 metric tons, the ICE data showed.

Ongoing disruptions around the Strait of Hormuz have impacted more than 80% of Middle East naphtha exports, endangering Asian naphtha supply availability. The prolonged shutdown of the waterway poses a severe threat to Asian petrochemicals steam crackers, which rely heavily on naphtha feedstock from the Middle East, forcing them to pivot toward West of Suez arbitrage cargoes despite higher freight costs and extended delivery times.

The Platts-assessed front-month FOB Persian Gulf naphtha swap averaged $815.49/metric ton in March, up from an average of $542.79/mt in February.

The FOB Fujairah naphtha cargo price averaged $829.16/mt in March, up from an average of $561.67/mt in February, Platts data showed.

Open interest for the front-month March MOPAG 92 RON gasoline swap was unchanged at zero in March, according to ICE data.

Cargo flows through the Strait of Hormuz have plummeted in March due to the war, with US President Donald Trump threatening heightened attacks on Iranian power plants, Platts previously reported.

Traffic through the contested Strait of Hormuz fell 95% month over month in March as ships avoided the narrow waterway in the war's second month, an April 1 CAS report showed.

The front-month FOB Persian Gulf 92 RON gasoline swap averaged $112.12/b in March, increasing $39.09/b from February's average at $73.03/b, Platts data showed.

In the spot market, the FOB Fujairah 92 RON gasoline marker averaged $118.63/b in March, rising $41.01/b from the February average at $77.62/b, Platts data showed.

The Platts FOB Fujairah assessments for gasoline were first published on Oct. 3, 2016, and for naphtha on Sept. 1, 2020. These independent price assessments, basis FOB Fujairah, complement Platts' existing MOPAG netbacks. The independent assessments reflect trade on a FOB basis at key ports across the Persian Gulf.

Since the mid-2010s, the Middle East has seen substantial growth in refining and storage capacity, as well as widespread expansion in physical oil trading and market participation. These factors have led to a more vibrant and active spot physical market for oil products.

Note: Open interest for a month is measured at the end of the previous month.

Source: Intercontinental Exchange