Crack Spreads Drift Lower as Global Stocks Edge higher

Refined product crack spreads are holding steady as short term extra supplies and future demand concerns offset the limited refining capacity and low stock levels.

• Higher diesel exports for China and ongoing exports from Russia ahead of the Feb 5 ban have so far only provided a little help to boost global distillate stock levels. European refiners are attempting to build stocks and increase Middle East crude supplies ahead of the EU sanctions on Russian seaborne crude next month.
• Low global distillate stocks have increased slightly over the last week, but more is required to replenish the depleted levels. Stock builds have been hampered by limited spare refining capacity and recent robust demand. Data this week showed US distillate stocks are still 13.5% below the five year average, EU ARA Gasoil stocks are 18% below and Singapore Middle Distillates 37% below.
  • US 321 crack down -0.4$/bbl at 33.83$/bbl
  • US gasoline crack down -1.8$/bbl at 20.78$/bbl
  • US ULSD crack down -0.6$/bbl at 59.75$/bbl
  • EU Gasoline-Brent down -0.6$/bbl at 3.07$/bbl
  • EU Gasoil-Brent up 0.3$/bbl at 37.52$/bbl