Gasoil is the broad category of middle-distillate petroleum products covering heating oil, agricultural diesel, marine gas oil (MGO), and the base material for road-grade diesel (EN590). It is one of the most actively traded petroleum products globally, with the ICE Gasoil futures contract serving as the primary European pricing benchmark.

D2 is the Russian GOST-specification gasoil (GOST 305-82), widely traded from Black Sea and Baltic export terminals. D2 commands pricing close to international gasoil but may be discounted relative to EN590 due to specification differences, particularly sulphur content (D2 typically 0.2% vs EN590's 10ppm maximum). The EU's ban on Russian petroleum product imports (February 2023) substantially redirected D2 trade flows toward Asian, Middle Eastern, and African buyers.

Key Gasoil Pricing Hubs

Gasoil is priced across three primary regional hubs, each serving different trade flows:

  • Rotterdam (ARA) — Europe's dominant gasoil hub and the physical delivery point for the ICE Gasoil futures contract. Rotterdam prices underpin heating oil in Northern Europe and automotive diesel across the continent.
  • Singapore — Asia's key middle-distillate hub, pricing gasoil for APAC buyers and serving as the primary reference for marine gas oil in the region's busy shipping lanes.
  • Fujairah — the Middle East hub at the mouth of the Arabian Gulf, pricing gasoil for regional buyers and bunkering vessels transiting the Strait of Hormuz.

Key Gasoil / D2 Price Drivers

  • Brent crude price — the primary input cost; gasoil typically trades at Brent + $150–280/MT (crack spread)
  • ICE Gasoil crack spread — the refinery margin for gasoil production; widens in heating season and during supply disruptions
  • ARA heating oil stocks — Euroilstock weekly storage data for ARA gasoil inventory is the most-watched short-term demand signal
  • Seasonal demand — Q4 heating oil demand in Northern Europe and the Northeast US supports gasoil prices; Q2 agricultural season adds off-road diesel demand
  • Russian supply flows — EU ban on Russian petroleum products (February 2023) reshaped D2 trade routes and redirected large volumes to Asia and Africa
  • Agricultural season — Spring planting drives off-road diesel demand in major farming regions (EU, US, Australia)
  • Marine ECA compliance — vessels switching from VLSFO to MGO in Emission Control Areas drive incremental gasoil demand

How Gasoil and D2 Are Purchased

Gasoil and D2 transactions range from small barge lots (500–2,000 MT) to large cargo sizes (25,000–50,000 MT). Standard terms typically include an independent quantity and quality inspection at load port, specification certificates (SGS, Intertek, or Bureau Veritas), and payment via MT103 SWIFT wire, confirmed letter of credit (LC at sight), or documentary collection depending on the buyer-seller relationship. Most trades are conducted FOB load port or CIF destination on a spot basis, with 3–10 days delivery lead time.