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Tight Supplies Support Rising Diesel Crack Spreads

OIL PRODUCTS

Diesel crack spreads continue the weekly trend higher with tight supplies, low stocks in both US and EU and a slight recovery in US implied demand this week.

  • The US spread is up 20$/bbl and EU up about 13$/bbl since the start of the week.
  • High refinery outages due to maintenance and French strikes, and lower flows from Russia are keeping supplies tight with strengthening Gasoil curve backwardation.
  • EIA data this week showed US distillate stocks 21% below normal. European ARA Gasoil stocks are 29% below normal despite a small increase of 27k mt in the Insights Global data updated yesterday.
    • US 321 crack up 0$/bbl at 40.91$/bbl
    • US gasoline crack down -1.1$/bbl at 23.09$/bbl
    • US ULSD crack up 2.5$/bbl at 76.63$/bbl
    • EU Gasoline-Brent down -0.3$/bbl at 4.68$/bbl
    • EU Gasoil-Brent up 0.6$/bbl at 47.9$/bbl

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