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US Gasoline Cracks Hold Gains Amid Refinery Outages

OIL PRODUCTS

Gasoline crack spreads have dipped slightly from a peak late yesterday but are maintaining most of the gains seen after a rally up to the highest since September with the US front month spread over 20.3$/bbl. US refinery outages remain high with the potential that some recent shutdowns due to severe weather run into an expected heavy spring maintenance season.

  • US Gulf Coast refineries are gradually recovering from the effects of Winter Storm Geri, which took around 15% of its crude-processing capacity offline, according to Wood Mackenzie, cited by Bloomberg. Around 1.4m b/d was offline in PADD3, with 1.7m b/d offline across the US as of Jan. 22. This compares to 1.5m b/d and 1.9m b/d last week.
  • The strength in US gasoline cracks is despite data from GasBuddy and OPIS both showing a drop in demand last week to 7.78mbpd. Demand fell by around 6.1% last week according to GasBuddy while OPIS shows a drop of 5.8% on the week.
    • RBOB FEB 24 down -0.8% at 2.22$/gal
    • EU Gasoline-Brent down -1.6$/bbl at 12.73$/bbl
    • US gasoline crack up 0.6$/bbl at 19.47$/bbl

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