Free Trial
JGB TECHS

(H3) Extends Bounce Off Lows

USDCAD TECHS

Pierces The 50-Day EMA

US TSYS

Risk Buoyed Ahead Fed Blackout

NEW ZEALAND

Chris Hipkins Named To Succeed Jacinda Ardern As PM

AUDUSD TECHS

Remains Above Support At The 20-Day EMA

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Tight Distillate Stocks Support Prices Ahead of Winter Season

OIL

Strong demand for diesel in October, combined with reduced global production, has resulted in lower diesel inventories in the US.

  • The US supply of distillate in Oct 2022 was the lowest since 2008 at 25 days. This compares to an average of 34 days between 2017 and 2021. US distillate inventories have been below the previous five-year (2017–21) low since the start of 2022.
  • Reduced refining capacity in the US and globally since 2020 is one of the main reasons for low distillate inventories. Tight global stocks, European refinery outages due to strikes, and the seasonal heating demand are supporting diesel markets.
  • The Northeast US is still even tighter than the US average with stocks in PADD 1B under half the seasonal normal amount despite a slight increase in the EIA data this week.
    • US gasoline crack up 0.1$/bbl at 21.39$/bbl
    • US ULSD crack up 1.4$/bbl at 65.2$/bbl
    • EU Gasoline-Brent down -0.1$/bbl at 4.59$/bbl
    • EU Gasoil-Brent up 1.6$/bbl at 37.88$/bbl

Keep reading...Show less
158 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Strong demand for diesel in October, combined with reduced global production, has resulted in lower diesel inventories in the US.

  • The US supply of distillate in Oct 2022 was the lowest since 2008 at 25 days. This compares to an average of 34 days between 2017 and 2021. US distillate inventories have been below the previous five-year (2017–21) low since the start of 2022.
  • Reduced refining capacity in the US and globally since 2020 is one of the main reasons for low distillate inventories. Tight global stocks, European refinery outages due to strikes, and the seasonal heating demand are supporting diesel markets.
  • The Northeast US is still even tighter than the US average with stocks in PADD 1B under half the seasonal normal amount despite a slight increase in the EIA data this week.
    • US gasoline crack up 0.1$/bbl at 21.39$/bbl
    • US ULSD crack up 1.4$/bbl at 65.2$/bbl
    • EU Gasoline-Brent down -0.1$/bbl at 4.59$/bbl
    • EU Gasoil-Brent up 1.6$/bbl at 37.88$/bbl