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Crack Spreads Drift Lower on Demand Growth Concerns

OIL PRODUCTS

Diesel and gasoline spreads are drifting lower with recession fears and central bank tightening weighing in product demand growth.

  • Moves remain muted with global distillate stock levels still below normal despite a slight recovery in recent weeks. Data release this week showed US stocks 10% below the five year average for the time of year, European ARA Gasoil stocks 20% below and Singapore Middle Distillates 31% below.
    • Brent FEB 23 up 0.7% at 87.45$/bbl
    • WTI JAN 23 up 0.9% at 81.94$/bbl
    • US 321 crack down -0.7$/bbl at 29.19$/bbl
    • US gasoline crack down -0.9$/bbl at 16.27$/bbl
    • US ULSD crack down -0.2$/bbl at 55.14$/bbl
    • EU Gasoline-Brent down -0.1$/bbl at 0.45$/bbl
    • EU Gasoil-Brent up 0.3$/bbl at 35.53$/bbl

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