The diesel market is experiencing undercurrents, with strong demand in the east and weak in the west, and the supply bottleneck remains unresolved.

⑴ The structure of the Asian diesel market has eased slightly, with the previous month's paper market showing weakness, ICE diesel futures also declining, but physical spot trading remained muted for the second consecutive trading day. ⑵ The East-West price spread continues to hold at a premium of around $70 per ton, reaching the highest level since March 12. Tightened Asian supply remains a key driving factor, with traders maintaining a bullish sentiment. ⑶ As May crude oil arrivals drop to their lowest level, the supply side may tighten further. Refining margins gave back most of the previous day's gains, closing near $77.6 per barrel, while the cash price spread softened to about $57.5 per barrel. ⑷ After a fully-loaded Kuwaiti crude oil tanker caught fire following an attack by Iran at its anchorage in a Dubai port, damage to the hull has raised concerns over oil spills. Meanwhile, India's diesel exports to Southeast Asia in March surged to a more than seven-year high, with traders reallocating supply to cover short positions. ⑸ Oil prices remained volatile on Tuesday as investors weighed Trump's tariff comments regarding the potential to end the conflict against the impact of a prolonged shutdown of the Strait of Hormuz on supply. Market sentiment continues to be dominated by geopolitical developments.