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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.
OIL PRODUCTS
Diesel cracks are extending the recent trend lower driven by concern for soft demand while gasoline cracks are holding steady supported by a US inventory draw and increase in implied demand yesterday. US front month diesel crack spread is trading at the lowest since mid July.
- Cracks are expected to tick down next year with supply growth to exceed demand growth modestly in an ex-recession case according to a JP Morgan note. Next year is expecting a more mild year for global turnaround activity compared to 2023 and some new global supply is ramping while macro driven demand could be softer.
- Product inventories are ending the year relatively well positioned according to the note on Dec 26. Refined products have followed the typical year-end stock builds, but US inventories remain tight with gasoline near five-year lows and diesel below five-year range. Diesel in Asia and Europe continue to look tight, but gasoline is closer to the middle of five-year ranges.
- The latest data showed US distillate stocks 9.55% below the five year average, European ARA Gasoil stocks 14.55% below and Singapore Middle Distillates inventories 23.2% below average.
- US 321 crack up 0.1$/bbl at 22.74$/bbl
- US gasoline crack up 0.4$/bbl at 16.93$/bbl
- US ULSD crack down -0.5$/bbl at 34.36$/bbl
- EU Gasoline-Brent up 0.8$/bbl at 9.32$/bbl
- EU Gasoil-Brent down -0.5$/bbl at 21.35$/bbl
Source: Bloomberg
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.
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