May 26, 2023 14:28 GMT
Margins Edge Higher on US Debt Limit Optimism
Diesel and gasoline margins tick higher today with support from wider market optimism over the chances of raising the US debt limit and avoiding a default.
- Despite edging higher diesel crack spreads remain low compared to start of year levels with the US spread at 26.7$/bbl versus around 58$/bbl.
- The transatlantic diesel arbitrage has shut in recent days due to rising shipping costs according to Bloomberg. Shipping costs from the US Gulf Coast to Europe have increased 80% since the start of the week due to a spike in diesel exports partly due to maintenance at the Panama Canal.
- US 321 crack up 0.9$/bbl at 33.13$/bbl
- US gasoline crack up 1$/bbl at 36.32$/bbl
- US ULSD crack up 0.6$/bbl at 26.73$/bbl
- EU Gasoline-Brent up 0.7$/bbl at 23.27$/bbl
- EU Gasoil-Brent up 0.4$/bbl at 15.07$/bbl