Gasoil is a middle distillate petroleum product similar to diesel fuel, commonly used for heating, transportation, and industrial applications in Europe and other international markets. European gasoil serves as a key benchmark for distillate pricing and is actively traded on the ICE exchange. Gasoil specifications and markets differ from U.S. heating oil and diesel markets.

Gasoil prices are influenced by seasonal heating demand, economic activity affecting transportation fuel consumption, refinery operations, and crude oil costs. The product serves multiple end-use markets, creating complex supply-demand dynamics that traders must understand. Gasoil crack spreads measure refining margins and profitability for converting crude oil into this valuable middle distillate product.

Real-world example: European gasoil futures rally from $650 to $750 per ton ahead of winter heating season as traders anticipate increased demand and potential supply constraints from reduced Russian imports.