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Diesel Cracks Ease Back from Recent Peak

OIL PRODUCTS

The diesel crack spread rally is taking a breather today after increasing all month on tight supplies and a recovery in EIA demand data.

  • The global supply shortage heading into the northern hemisphere winter is driven by reduced refinery capacity including the BP Toledo refinery outage and the French refinery strikes, and the potential for a decline in future Russian supplies. There remains uncertainty over whether lower Russian flows to Europe, due to the upcoming ban on seaborne products on Feb 5, will be replaced by Middle Eastern supplies.
  • The US diesel cracks spread has risen from below 48$/bbl in mid September up to a peak of 77$/bbl.
    • US 321 crack down -1.6$/bbl at 39.06$/bbl
    • US gasoline crack down -1$/bbl at 21.17$/bbl
    • US ULSD crack down -1.7$/bbl at 74.67$/bbl
    • EU Gasoline-Brent down -1.6$/bbl at 4.06$/bbl
    • EU Gasoil-Brent down -1.9$/bbl at 46.87$/bbl

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