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Diesel Cracks Extend Pull Back

OIL PRODUCTS

Weak demand for diesel, stronger than expected Russian product output and building inventories are pushing diesel crack spreads lower. The US diesel crack is down to below 40$/bbl from a peak of 43.8$/bbl on 2 Mar.

  • Prices are falling despite the halt to fuel deliveries from French refineries due to strike action.
  • Gasoline cracks are drifting off from the highs seen yesterday after rallying due to a gradual rebound in US demand this year, lower gasoline supply from Europe and a strong US refinery maintenance season ahead of the upcoming US driving season.
  • Shipments of gasoline from Europe to the US dropped in the week to 2 March. Volumes fell to 58kbpd compared to 245kbpd the previous week according to bill of lading and ship tracking data from Bloomberg.
    • US 321 crack down -0.7$/bbl at 37.58$/bbl
    • US gasoline crack down -0.4$/bbl at 36.5$/bbl
    • US ULSD crack down -1.2$/bbl at 39.75$/bbl
    • EU Gasoline-Brent down -0.5$/bbl at 18.86$/bbl
    • EU Gasoil-Brent down -0.8$/bbl at 24.25$/bbl

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