September 28, 2022 07:20 GMT
Refining margins for gasoil and gasoline will maintain their divergence into the middle of 2023 according to Phillips 66 as margins for industrial use rise due to the upcoming European ban on Russian oil and products.
- "It will be a very difficult phase of readjusting when the ban fully takes effect which will continue to push gasoil margins higher," Sri Paravaikkarasu, director of market analysis at Phillips 66 said.
- Refiners are running hard to meet extra winter demand for gasoil, so gasoline will be dumped into the market as a byproduct since the summer driving demand season is over, she added.
- Gasoil cracks have more than doubled to $32.57 a barrel over Dubai crude since the beginning of the Russia-Ukraine crisis, while gasoline margins have weakened by over 96% to 43 cents per barrel over Brent crude oil according to Refinitiv data.