Gasoline Cracks Drift Lower, Diesel Edges Higher Before EIA Data

Refined product crack spreads are relatively steady ahead of the EIA petroleum inventory data expected later today.

• Recession fears leading to lower demand are pushing down crude prices and weighing on gasoline margins. The US gasoline crack has gradually fallen from a peak of over 37$/bbl in June down to the current levels near 14$/bbl.
• Tight supplies, low stocks and resilient demand have supported diesel margins during August with the US crack recovering to 67$/bbl having dipped as low as 43$/bbl early in the month.
• EIA data expectation is for a gasoline stock draw of -0.7mbbls and distillates draw of -0.45mbbls.
  • Brent NOV 22 down -2.4% at 95.54$/bbl
  • WTI OCT 22 down -2.3% at 89.53$/bbl
  • US 321 crack down -0.7$/bbl at 31.45$/bbl
  • US gasoline crack down -0.8$/bbl at 13.87$/bbl
  • US ULSD crack up 0.3$/bbl at 66.96$/bbl
  • Gasoline-Brent down -0.8$/bbl at 4.48$/bbl
  • Gasoil-Brent up 0.9$/bbl at 50.74$/bbl