Diesel Cracks Extend Pull Back from Yesterday

Diesel crack spreads are edging lower again today after the pull back yesterday driven by limited disruption from hurricane Idalia and the fire last week at the Garyville refinery. The front month US diesel crack has fallen from a high of about 58$/bbl on 25 Aug back to levels last seen in mid Aug of 46.2$/bbl according to Bloomberg data.

• The Gasoil time spreads has also eased lower with the reducing supply risks with Dec23-Dec24 down from 100$/bbl to 75.5$/bbl. Curve backwardation however remains strong with supplies tight heading into the winter heating season and with global stocks still low.
• EIA data yesterday showed Midwest diesel supplies have risen to the highest in two years although distillates demand edged lower on the week. Total US distillates inventories were yesterday showed as still about 15% below the five year average.
• Russian exports of refined oil products are expected to plummet to a 10 month low in August due to planned maintenance at refineries.
• The third batch of Chinese export quotas for refined products are to be released soon, according to OilChem. OilChem estimates that 12m mt will be released, pushing up the total quotas to 39.9m mt for 2023. This would be a rise of 2.75m mt on the previous year.
  • Gasoil SEP 23 unchanged at 895$/mt
  • ULSD OCT 23 down -0.3% at 3.06$/gal
  • Gasoil SEP 23-OCT 23 down -1$/mt at 12.5$/mt
  • Gasoil DEC 23-DEC 24 up 1$/mt at 76$/mt
  • EU Gasoil-Brent down -0.7$/bbl at 32.12$/bbl
  • US ULSD crack down -0.9$/bbl at 46.29$/bbl