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Production to Pressure Gasoline Cracks After Summer Support: Kpler

OIL PRODUCTS

Summer gasoline demand is expected to support global gasoline cracks in the weeks ahead before seeing pressure from production increases according to Kpler on 18 May.

  • Kpler said “increased production, namely in Asia, will eventually lead to a lengthening global balance and put pressure on gasoline cracks in 2H”.
  • They saw gasoline cracks increasing week on week in all major trading regions by 1-2.50$/bbl.
  • The US gasoline crack is up from about 32$/bbl to 36.1$/bbl this week while the European crack is up from around 17$/bbl to 20.6$/bbl according to Bloomberg data.
    • US gasoline crack down -0.3$/bbl at 36.17$/bbl
    • EU Gasoline-Brent down -0.4$/bbl at 20.66$/bbl

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