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Diesel Cracks to Stay Elevated: Energy Aspects

OIL PRODUCTS

The European diesel crack is expected to stay elevated because of a lack of supply according to Energy Aspects as backwardation on Europe’s benchmark diesel contract prevents a meaningful inventory build.

  • US diesel imports are expected to fall Q4 as its seasonal demand increases, keeping supplies in the domestic market.
  • September refinery maintenance for key suppliers will also tighten exports.
  • There is expected to be limited upside from China’s July diesel exports because of limited quotas.

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