US Diesel Crack Falls to Lowest Since July

Diesel cracks extend the recent decline with the US front month spread falling to the lowest since July as demand concerns add to strong exports from China and India this month to offset the support from low inventories and refinery maintenance.

• The market impact of Russian diesel and gasoline exports ban appears to be relatively limited after Russia yesterday added some exclusions to the ban and with the measure widely expected to be short lived.
• The Gasoil curve backwardation has also softened since the Russian ban was announced. The prompt spread is down from 35.5$/mt on 21 Sep to 26.5$/mt and Dec23-Dec24 is down to the lowest since 7 Sep at 92.25$/mt.
• Data last week showed US distillate stocks still at 15.1% below the five year average with the updated official EIA data due tomorrow after the API data release tonight.
  • Gasoil OCT 23 down -2.3% at 943$/mt
  • ULSD OCT 23 down -1.9% at 3.2$/gal
  • Gasoil OCT 23-NOV 23 down -2.75$/mt at 26.5$/mt
  • Gasoil DEC 23-DEC 24 down -12.75$/mt at 91.25$/mt
  • EU Gasoil-Brent down -1.3$/bbl at 30.81$/bbl
  • US ULSD crack down -1.2$/bbl at 43.36$/bbl