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US Diesel Cracks Extend Gains on Refinery Outages and Cooler Weather

DIESEL

Diesel cracks spreads are edging higher again today to extend gains this week with support from US refinery outages.

  • US CDU outages are rising to the highest levels since mid November with planned works including at Motiva Port Arthur, Valero’s Port Arthur, PBF Chalmette, Marathon’s Galvon Bay and with PBF Toledo works planned for next week.
  • The front month US diesel crack has rallied from around 34.5$/bbl at the start of the year up to 37.94$/bbl while the European Gasoil-Brent spread is up from 21.5$/bbl to 23.6$/bbl.
  • Below normal distillate stocks are supportive with US stocks still below normal despite recent gains amid weak demand from heating and trucking. Colder weather in the US during January will be supportive of heating demand.
    • Gasoil JAN 24 up 3% at 773.5$/mt
    • ULSD FEB 24 up 1.9% at 2.63$/gal
    • Gasoil JAN 24-FEB 24 up 0.25$/mt at 9$/mt
    • Gasoil JUN 24-DEC 24 up 1.75$/mt at 17.25$/mt
    • EU Gasoil-Brent up 0.4$/bbl at 23.64$/bbl
    • US ULSD crack up 0.3$/bbl at 38.08$/bbl

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