Gasoline Extends Decline With Focus on Weak Demand

Gasoline cracks extend the decline from yesterday with the US crack falling nearly 6$/bbl so far this week.

• Gasoline cracks fell yesterday following the EIA data showing a stock build and drop in US implied demand. Demand concerns are weighing on margins and assisted by the return of US refineries from maintenance and the gradual return of French refineries.
• Asian spreads are also falling driven by slower gasoline demand in major consuming nations such as Indonesia.
• Oil product market oversupply could be eased if China cuts quota for refined oil products exports in a second batch for 2023. Quotas could be reduced as domestic demand improves while there is less need to boost its economy through oil products exports. China's refinery throughput hit a record-high in March.
  • RBOB MAY 23 down -2.6% at 2.58$/gal
  • US gasoline crack down -1.4$/bbl at 30.46$/bbl
  • EU Gasoline-Brent down -1$/bbl at 15.27$/bbl