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US Cracks Supported by Low Stocks and Hope of Summer Demand Boost

OIL PRODUCTS

Diesel and gasoline cracks are edging higher with EIA data yesterday showing signs of a recovery in demand and with inventories still low.

  • Gasoline demand saw a boost in the weekly EIA data particularly in the Gulf Coast region to help bring the four week average up 1%. Distillates demand could be seeing a boost from the agriculture sector while four week jet fuel demand increased 6% after a jump higher on the week as airlines stock up ahead of the summer travel.
  • Diesel crack spreads are the highest since mid April with the US spread up from a low of around 22.8$/bbl on 1 May.
  • US distillates stocks are over 15% below the five year average and gasoline stocks are about 7% below.
    • US 321 crack up 0.2$/bbl at 30.8$/bbl
    • US gasoline crack up 0.1$/bbl at 32.13$/bbl
    • US ULSD crack up 0.3$/bbl at 28.14$/bbl
    • EU Gasoline-Brent down 0$/bbl at 17.37$/bbl
    • EU Gasoil-Brent up 0.3$/bbl at 16.34$/bbl

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