Cracks Steady After Support From Weekly EIA Demand Yesterday

Diesel cracks are drifting slightly lower and gasoline cracks steady today with wider market economic concerns and a muted start to the US driving season balanced against an increase in the weekly EIA implied demand data released yesterday. Low inventories and refinery outages boosted margins last week but prices have pulled back this week as some facilities return to service.

• EIA data yesterday showed a small build in US gasoline and distillates stocks while four week implied demand dipped despite increases on the week. The four week distillates demand is below all years except 2020 from the last five years while gasoline demand is generally tracking the seasonal trend higher.
• Data this week showed US distillate stocks 14.0% below the five year average, Singapore Middle Distillates inventories 29.8% below average and European ARA Gasoil stocks are 11.2% below. US gasoline stocks are about 7% below the five year average.
• A European market hit by a lack of diesel supply from Russia is pulling volumes from the Middle East and India according to Sparta Commodities yesterday.
• Brazil’s imports of Russian diesel rose to new record of 130kbpd in May according to Bloomberg displacing US supplies to Latin America.
  • US 321 crack down -0.1$/bbl at 33.41$/bbl
  • US gasoline crack up 0.1$/bbl at 34.37$/bbl
  • US ULSD crack down -0.3$/bbl at 31.48$/bbl
  • EU Gasoline-Brent up 0.2$/bbl at 21.47$/bbl
  • EU Gasoil-Brent down -0.4$/bbl at 19.35$/bbl