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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL PRODUCTS
Diesel crack spreads are again seeing some support today after edging higher yesterday with refiners potentially reducing future run rates in Asia due to the low margins. Facts Global Energy expect run cuts in Asia, not including the Middle East, of at least 500kbpd from July.
- South Korea’s biggest refiner SK is looking to reduce the run rate at the Ulsan plant in July by approximately 10% from April and May according to Bloomberg last week.
- Margins have been falling due to weak demand, refineries returning from outages and new refining capacity coming online around the world from new refineries and expanded capacity at existing facilities.
- RBC estimates that net global refining capacity will increase by 1.5mbpd this year and by another 2.4mbpd in 2024.
- The addition of 250kbpd extra capacity at the Beaumont, Texas facility is the largest US addition for more than ten years.
- US ULSD crack up 0.4$/bbl at 27.4$/bbl
- EU Gasoil-Brent up 0.3$/bbl at 16.11$/bbl
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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