OIL PRODUCTS: Gasoline Cracks Pause June Trend Higher
Gasoline crack spreads are edging slightly lower today but still holding onto most of the gains seen this month with support from driving season demand and low US inventories.
- The US front month gasoline crack is down from a high of around 41.27$/bbl on 16 June to 39.8$/bbl today compared to a low of 32.2$/bbl on 2 June.
- Weekly (Sun-Sat) US gasoline demand rose 1.8% last week but was 1.4% below the four week moving average according to GasBuddy data yesterday. EIA data has seen a gradual increase in line with the seasonal trend since April.
- Shipments of gasoline from Europe to the US fell to 308kbpd in the week to 15 June from a revised 478kbpd the previous week according to bills of lading and ship tracking data from Bloomberg. New York received high volumes arriving from Europe, Canada, Saudi Arabia, India and Brazil in early June.
- The strong imports have helped to cover for the ongoing outage to the Phillips 66 Bayway FCC expected until 6 July while the Colonial Pipeline supply to New York Harbor from Gulf Coast has been fully booked for months.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
USDCAD TECHS: Bullish Short-Term Theme
- RES 4: 1.3695 High Mar 28
- RES 3: 1.3668 High Apr 28 and key resistance
- RES 2: 1.3640 High May 3
- RES 1: 1.3568 High May 15
- PRICE: 1.3520 @ 16:33 BST May 19
- SUP 1: 1.3404 Low May 16
- SUP 2: 1.3363/15 Low May 11 / 8
- SUP 3: 1.3302 Low Apr 14 and a key near-term support
- SUP 4: 1.3275 Low Feb 14
USDCAD remains above Tuesday’s low. The recovery from the May 8 low eased recent bearish pressure and the pair has traded through the 50-day EMA, currently at 1.3513. A clear break of this average would strengthen the case for bulls and signal scope for a climb towards resistance at 1.3668, the Apr 28 high. Key support lies at 1.3302, the Apr 14 low. A break would reinstate the recent bearish theme.
US STOCKS: Stocks Off 3M Highs as Debt Ceiling Talks Hit Snag
Stocks see-sawing in modestly weaker territory after posting the best levels since early February in the first half as debt ceiling negotiations hit a snag in late morning trade.
- "GOP DEBT NEGOTIATORS SAY WHITE HOUSE NOT BEING REASONABLE .. and GOP NEGOTIATORS LEAVE DEBT TALKS" Bbg have triggered late morning unwinds with SPX E-Mini Futures down 11.25 points (-0.27%) at 4205; DJIA down 131.31 points (-0.39%) at 33457.23; Nasdaq down 44.1 points (-0.3%) at 12652.15.
- No substantive reaction to a policy panel event with Fed Chairman Powell, former chair Bernanke highlighting "key issues in monetary policy and the economy and facilitate discussions on the challenges faced by monetary policymakers.
- Echoing previous comments - tighter credit conditions "weigh on economic growth hiring and inflation. As a result, our policy rate may not need to rise as much as it would have otherwise to achieve our goals."
- At the moment: Emini futures have breached key resistance and the bull trigger at 4206.25, the May 1 high. Clearance of this level confirms an extension of the bull trend from Mar 13. This opens 4244.00, the Feb 2 high and the next key short-term resistance. Key support is at 4062.25, the May 4 low. A move through this level would highlight a bearish threat.
AUDUSD TECHS: Key Support Remains Exposed
- RES 4: 0.6921 High Feb 20
- RES 3: 0.6861 50.0% retracement of the Feb 2 - Mar 10 bear leg
- RES 2: 0.6824 High Feb 24
- RES 1: 0.6705/6818 50-day EMA / High May 10
- PRICE: 0.6664 @ 16:26 BST May 19
- SUP 1: 0.6605 Low May 18
- SUP 2: 0.6565 Low May 10 and the bear trigger
- SUP 3: 0.6547 61.8% of the Oct - Feb bull cycle
- SUP 4: 0.6403 76.4% of the Oct - Feb bull cycle
AUDUSD maintains a softer tone following the pullback from 0.6818, the May 10 high, and price is trading closer to this week’s lows. A bearish continuation would expose key support at 0.6565, the Mar 10 low. Clearance of this level would confirm a resumption of the bear cycle that started Feb 2 and highlight a range breakout. On the upside, a breach of 0.6818 is required to reinstate a bullish theme and this would expose 0.6861, a Fibonacci retracement.
