US Pump Prices Fall but Cracks Stable

US gasoline pump prices continued to fall last week from a peak above 5$/gal last month to 4.72$/gal. The fall follows a drop in both outright oil prices and an easing of the high refined product crack spreads although spread prices have stabilised in recent days.

• Summer driving season demand is below average with signs that the high pump prices are having an impact. The proposed 18.4c/gal US federal gasoline tax holiday has not yet been agreed but several states have implemented a reduction in state gasoline tax.
• Supply remains tight with US gasoline and diesel inventories well below seasonal normal despite high refinery utilization according to EIA data. The tight supply is keeping crack spreads elevated as they remain well over double the start of year levels despite the 30% drop over the past month.
• US 321 crack up 0.2$/bbl at 43.4$/bbl
• US gasoline crack down -0.3$/bbl at 39.77$/bbl
• US ULSD crack up 1.3$/bbl at 50.66$/bbl
• Brent FCC margin up 0.3$/bbl at 14.54$/bbl
• Gasoline-Brent down -0.3$/bbl at 31.2$/bbl
• Gasoil-Brent up 0.6$/bbl at 36.28$/bbl