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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL PRODUCTS
Refining margins have resumed the bull trend on the back of continuing tight market conditions.
- The bull trend has been driven by a reduction in refined product output from Russia to Europe, years of underinvestment in refining and demand picking up post pandemic. US and Europe are in a similar situation with EU receiving a lack supply from Russia and US having reduced supply and high exports to Europe. Demand has so far not been significantly impacted by high pump prices and the start of the US driving season will likely support demand even further.
- US 321 crack spread trading higher up to 49$/bbl after dipping to 40$/bbl early last week.
- Europe spreads were also stronger last week. The Brent FCC (Fluid Catalytic Cracking) spread up to 20$/bbl from below 14$/bbl early last week.
- The recent move upwards in refining margin has been largely driven by gasoline rather than diesel with the strong bull trend resuming after the pull back in the middle of the month.
- US gasoline crack up 0.34$/bbl to 49.25$/bbl and European gasoline crack up 1.59$/bbl to 45.60$/bbl.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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