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Diesel Cracks Resume Decline After Rally Yesterday

OIL PRODUCTS

Diesel crack spreads are edging lower today after seeing some strength yesterday. Upside remains limited by returning refining capacity following maintenance and with ongoing demand concerns despite a recovery in US implied distillate demand according to EIA yesterday.

  • The demand concerns are highlighted by the declining Asian diesel time spreads with the prompt Singapore spread the lowest since November. Higher crude oil prices are limiting refining margins and Asia is seeing fading opportunity to send diesel to Europe and US due to weak demand.
  • Four week EIA distillate demand also saw in increase this week to bring demand back up the lower end of the five year range.
  • European gasoil spreads also continue to pull back assisted by the gradual easing of the pressure on the French energy sector with the return of some refining capacity.
  • US ULSD crack down -0.5$/bbl at 33.74$/bbl
  • EU Gasoil-Brent down -0.4$/bbl at 19.16$/bbl
  • Gasoil APR 23 down -0.4% at 785.75$/mt
  • Gasoil JUN 23-DEC 23 down -0.75$/mt at 24.5$/mt
  • Gasoil DEC 23-DEC 24 unchanged at 36.5$/mt

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