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Diesel Cracks Showing Volatility

OIL PRODUCTS

US diesel cracks have struggled for direction on the day, trading between lows of $40.268/b and $41.934/b, as prices fall back near to rangebound.

  • US ULSD crack up 0.1$/bbl at 41.12$/bbl
  • ULSD MAR 24 up 0.9% at 2.84$/gal
  • Gasoil MAR 24-APR 24 up 2.75$/mt at 27.25$/mt
  • Gasoil JUN 24-DEC 24 down -0.25$/mt at 37$/mt
  • The market continues to trend near its highest levels since October but has been trending downwards since Feb. 9.
  • Downward pressure comes from US distillates demand falling below the previous five-year seasonal range in the latest EIA data yesterday. Weaker US manufacturing data is also likely to impact gasoil demand in that sector.
  • Industrial production missed expectations in January, falling by -0.1% M/M (0.2% cons), alongside December's figures being revised downward to 0.0% (vs +0.1% unrevised).
  • However, the market is also seeing support as stocks draw and refinery runs are set to fall during a heavy US maintenance season.

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