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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL PRODUCTS
US 321 crack spread extends the recent decline weighed down by weak US demand, rising distillate stock levels and mild winter weather. The spread has declined from a peak of 41.85$/bbl on 23 Jan down to 28.2$/bbl (0.67$/gal) today.
- The decline is despite lower refinery utilisation so far this year compared to 2022 due to the winter weather disruption in December and the current strong refinery maintenance season.
- EIA data this week showed US distillates stocks still 15% below normal and gasoline stocks just under 5% below.
- Last week the EIA STEO report forecast lower gasoline and diesel prices in 2023 than in 2022 although they are expected to remain high compared with pre-pandemic prices.
- Low utilisation early this year will limit production and encourage refineries to maintain high utilisation during the summer once they return from maintenance.
- EIA forecast slower economic growth and high refinery run rates to drive a gradual decrease in petroleum product prices in 2023 and 2024. The EU ban on Russian refined products imports poses a supply risk and uncertainty to the forecast.
- US 321 crack down -0.7$/bbl at 28$/bbl
- US gasoline crack down -0.1$/bbl at 23.33$/bbl
- US ULSD crack down -1.9$/bbl at 37.35$/bbl
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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