Diesel Falls on Demand Concerns Before EIA Data

Diesel cracks are pulling back following the crude move lower on the back of concerns for demand due to the spread of covid and cases increasing in China.

• US product crack spreads have trended higher over the last two weeks with the reduction in refinery utilisation due to the winter disruption offsetting weak demand.
• The US diesel crack rallied from a low of 51$/bbl on 21 Dec up to a peak of 60.8$/bbl yesterday before drifting back down.
• EIA inventory data due out later today is expected to show another drop in US refinery runs with utilisation having already fallen from 95.5% at the start of December down to 90.9% last week.
  • Brent MAR 23 down -1.8% at 82.45$/bbl
  • WTI FEB 23 down -2% at 77.35$/bbl
  • US 321 crack down -0.3$/bbl at 32.87$/bbl
  • US gasoline crack down -0.1$/bbl at 20.55$/bbl
  • US ULSD crack down -1.6$/bbl at 57.39$/bbl
  • EU Gasoline-Brent down -0.2$/bbl at 6.53$/bbl
  • EU Gasoil-Brent down -2.8$/bbl at 39.62$/bbl