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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
Gasoline crack spreads are steady today after falling again yesterday with the European front month Gasoline-Brent spread at the lowest since December and the US spread the lowest since April 2020. The US front month crack is down from over 40$/bbl in mid August to a low of nearly 7.4$/bbl yesterday.
- Gasoline cracks have seen some support since mid last week after a nearly four week decline driven by weak demand amid high US pump prices after the end of the peak summer season.
- Refinery economics at current price levels remain attractive for high utilizations according to RBC. The prompt gasoline crack looks cheap by historical standards, but runs are expected to remain strong supported by a strong distillate crack as refineries do not operate in isolation by product.
- Nigeria will become a net exporter of petroleum products by the end of 2024 according to NNPC with the start of operations at the 650kbpd Dangote oil refinery in early 2024. Rising production in the Middle East is also adding to the downward price pressure.
- European gasoline arrivals in the US fell by 39% w/w to 202kb/d in the week to 5 Oct, according to bills of lading and ship-tracking data compiled by Bloomberg.
- RBOB NOV 23 down -0.2% at 2.23$/gal
- EU Gasoline-Brent up 0.2$/bbl at 5.14$/bbl
- US gasoline crack up 0.3$/bbl at 7.95$/bbl
Source: Bloomberg
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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