Diesel Cracks Steady With Ongoing Supply Uncertainty

Diesel crack spreads are holding steady today as the market seeks clarity over the impact of EU and G7 sanctions on seaborne Russian products on global diesel trade flows.

• Diesel crack spreads have seen support over the last week after gradually falling since mid January. Spreads declined due to weak demand, building distillate storage levels in Europe and reducing concern for tight supply due to higher than expected Russian output.
• Shipments of Russian diesel from the Baltic port of Primorsk have increased so far in February. A total of 562k tons or 468kb/d were exported in 1-9 Feb compared to 396kb/d in January. Last month Blomberg reported that Russian planned to increase Baltic and Black Sea diesel exports in Feb to 2.74m tons in Feb from 2.68m tons in Jan.
• February loadings of clean fuels from Asia to the Americas rose by 110k tons from the previous week to 430k tons and compared to 175k tons in Feb 2022 according to Bloomberg.
  • US gasoline crack up 1$/bbl at 26.13$/bbl
  • US ULSD crack up 0.2$/bbl at 40.98$/bbl
  • EU Gasoline-Brent up 0.4$/bbl at 13.3$/bbl
  • EU Gasoil-Brent up 0.2$/bbl at 24.73$/bbl