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Gasoline Margins Trading Up Towards Weekly High

OIL PRODUCTS

Gasoline margins are regaining most of the ground lost earlier this week with the European crack spread up towards the highs of just over 22$/bbl from 20 March.

  • The recovery has been supported by the large US inventory draw yesterday taking current total gasoline stocks below the five year range. Large draws on the Gulf Coast and East Coast led the decline due to low imports and high exports
  • Gasoline implied demand gained on the week to hold the four week average steady and just below the five year average. US gasoline demand rose 3.0% last week from the prior week to the highest since early December according to GasBuddy data earlier this week.
  • Restricted fuel supplies in Europe due to French strikes and Russian sanctions have limited US gasoline imports from Europe to the lowest since 2022 according to Vortexa data.
    • US 321 crack up 1$/bbl at 38.26$/bbl
    • US gasoline crack up 1.4$/bbl at 37.98$/bbl
    • US ULSD crack up 0.3$/bbl at 38.88$/bbl
    • EU Gasoline-Brent up 0.7$/bbl at 21.71$/bbl
    • EU Gasoil-Brent up 0.1$/bbl at 24.71$/bbl

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