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Free AccessDiesel Cracks Fall on Lower Demand Expectations
Diesel cracks lead refining margins lower after softer EIA demand data yesterday, due to falling gas prices and with weak demand feeding lower crude markets. Gasoline cracks remain largely unchanged after falling yesterday.
- The last month had seen much stronger diesel cracks than gasoline due to low supplies and resilient demand. The European energy crisis has increased the potential for fuel switching from gas to diesel, but EU gas prices have seen a significant correction in recent days.
- Global supplies could be impacted as Russia faces potential difficulties in finding buyers to redirect remaining European supplies before the oil product ban comes into effect on Feb 5 next year.
- Brent NOV 22 down -2.1% at 93.6$/bbl
- WTI OCT 22 down -2.2% at 87.59$/bbl
- US 321 crack down -1.4$/bbl at 28.25$/bbl
- US gasoline crack up 0.7$/bbl at 13.28$/bbl
- US ULSD crack down -5.5$/bbl at 58.26$/bbl
To read the full story
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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.