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Diesel Cracks Gain on Tighter Supply Before EIA Data

OIL PRODUCTS

Diesel and gasoline cracks continue to trend higher to recovery from the lows on 17 Feb.

  • A reduction in gasoil shipments from China to 390k tons in March from 1.97m tons in Feb is putting pressure on Asian supply and adding to price support for global crack spreads. Lower output from US and Asian refineries due to maintenance, Russian product supply uncertainty and higher transportation costs due to longer journeys have all helped the recovery in refined product margins.
  • The updated EIA inventory data due out later today is expected to show another decline in US refinery utilisation leading to small draws in product stocks.
  • An upward revision to US gasoline demand for December in EIA monthly data released yesterday has also added to the price support.
    • US 321 crack up 0.9$/bbl at 37.14$/bbl
    • US gasoline crack up 0.3$/bbl at 34.32$/bbl
    • US ULSD crack up 2.2$/bbl at 42.79$/bbl

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