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Volatile Spreads with Uncertain Product Demand

OIL PRODUCTS

Gasoline cracks drifting back but diesel remains strong

  • The extent of weak summer gasoline demand remains uncertain after EIA weekly implied demand showed a small recovery in data earlier this week. The recent weakness shown in EIA data has not necessarily been reflected in data from other sources such as OPIS and Gas Buddy.
  • Limited spare refining capacity and below normal inventory levels continue to support refined product prices. Gasoline stocks showed a big draw this week and the build in distillate stocks is only a fraction of what would be required to bring inventory levels back to normal.
  • Brent OCT 22 up 0.2% at 99.84$/bbl
  • WTI SEP 22 down -0.1% at 94.24$/bbl
  • US 321 crack up 0.2$/bbl at 40.51$/bbl
  • US gasoline crack down -0.3$/bbl at 33.99$/bbl
  • US ULSD crack up 1.1$/bbl at 53.56$/bbl
  • Gasoline-Brent down -0.9$/bbl at 16.42$/bbl
  • Gasoil-Brent up 1.2$/bbl at 38.65$/bbl

Source: MNI / EIA

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