Refiners To Boost Runs On Rising Diesel Cracks: Macquarie

Rising middle distillate margins are an incentive for refineries to boost utilisation rates, according to Macquarie.

• Stronger middle distillate cracks have outweighed weakening gasoline margins as implied gasoline demand in the US has remained soft and roads are less congested in most regions except for China.
• Gasoil cracks in Europe are rising as stocks in the ARA fall despite higher import levels, according to Macquarie analysts.
• The analysts remain bullish in the short-term on crude oil due to rising refinery runs and extended OPEC+ cuts. While these cuts are expected to draw inventories, this is expected to be shorter lived without further cuts to output.
• The market is now moving its focus to the macroeconomic situation in China, following positive signs from US data after Q2 GDP figures surpassed expectations.