February 06, 2023 16:02 GMT
Oil Product Crack Spreads Extend Decline
Refined product crack spreads are following the downward move in crude on concern for oil demand.
- US diesel crack spreads are down from around 64$/bbl on 20 Jan to 40.45$/bbl while gasoline crack spreads are down from 31.9$/bbl to 23.3$/bbl.
- Despite the decline, uncertainty remains of global oil product flows following Russian sanctions with Russia looking for alternative buyers and Europe increasing supplies from sources such as Middle East, US and China.
- The US market remains tight with high refinery outages and low stock levels limiting supplies. Loadings of clean fuels for February delivery from Asia to US increased by 175k tons to 320k tons according to Bloomberg data.
- US 321 crack down -1.8$/bbl at 28.98$/bbl
- US gasoline crack down -0.9$/bbl at 23.24$/bbl
- US ULSD crack down -3.4$/bbl at 40.37$/bbl
- EU Gasoline-Brent down -1.1$/bbl at 10.81$/bbl
- EU Gasoil-Brent down -2.3$/bbl at 23.14$/bbl