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Diesel Spreads Edge Higher After IEA Highlight Tight Supplies

OIL PRODUCTS

Diesel crack spreads edge higher after IEA earlier today highlighted the exceptionally tight diesel supplies with limited refining capacity and global stocks at an 18 year low.

  • Stocks are especially low on the US East Coast with distillate supplies in PADD1 45% below the five-year average according to EIA data last week. Colonial pipeline is flowing at full capacity but at least 11 vessels carrying 3.6mbbls of distillate are due into New York Harbour in the coming few weeks.
  • Gasoline crack spreads are easing lower with soft demand following the seasonal trend.
    • US 321 crack down -0.3$/bbl at 34.75$/bbl
    • US gasoline crack down -0.3$/bbl at 19.99$/bbl
    • US ULSD crack up 0.6$/bbl at 64.11$/bbl
    • EU Gasoline-Brent down -0.6$/bbl at 3.92$/bbl
    • EU Gasoil-Brent up 1.3$/bbl at 37.63$/bbl

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