OIL PRODUCTS: Oil Products End of Day Summary: Cracks Rise
Diesel and gasoline cracks have recovered some of the losses seen yesterday (after unexpected US fuel inventory builds and weak implied demand data), supported by signs of easing global trade tensions following a Trump-Xi call supportive.
- US gasoline crack up 0.5$/bbl at 23.21$/bbl
- US ULSD crack up 0.5$/bbl at 24.65$/bbl
- Global middle distillates are expected to be more bearish after a strong June ICE Gasoil expiry, but with risk from continuingly low US diesel stocks, according to Sparta Commodities.
- China’s LNG heavy-duty truck market softens in April on amid diesel price falls, favourable policies for electric vehicles, and weakness in the freight market, OilChem said.
- Irving Oil plans to spend C$100m to modernise an FCC unit at its 298k b/d St John refinery on Canada’s East Coast, the company said in a press release. Work will begin this month.
- Suncor plans maintenance at its 137,000 bpd Montreal refinery starting on June 5 and lasting about 2 weeks according to a regulatory filing.
- The PBF Energy 156k b/d Martinez refinery near San Francisco is preparing to restart the 27kb/d delayed coker following emergency repairs, according to a Bloomberg source.
- European ARA Gasoil stocks edged higher last week but remain below the seasonal five-year average after the decline the previous week, according to the latest Insights Global data cited by Bloomberg.
- Onshore fuel oil stockpiles in Singapore rose for a third consecutive week, with imports edging higher, according to Enterprise Singapore data cited by Reuters.
- Crude storage capacity utilisation rates among Shandong Independent refineries rose 0.4 percentage points on the week to 42.6% for the seven days to June 4, OilChem said.
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US: FED Reverse Repo Operation
RRP usage inches up to $129.858B this afternoon from $124.690B yesterday, total number of counterparties at 34. Usage had fallen to $54.772B last Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B.
EURGBP TECHS: Tests Key Support
- RES 4: 0.8781 2.236 proj of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8768 High Nov 20 ‘23
- RES 2: 0.8624/0.8738 High Apr 21/ High Apr 11 and the bull trigger
- RES 1: 0.8557 High Apr 28
- PRICE: 0.8487 @ 16:52 BST May 6
- SUP 1: 0.8467 50-day EMA
- SUP 2: 0.8462 Low May 1
- SUP 3: 0.8415 76.4% retracement of the Mar 28 - Apr 11 rally
- SUP 4: 0.8316 Low Mar 28 and a key support
EURGBP traded lower again Tuesday and a short-term bear cycle remains in play, for now. The next support has been broken at 0.8477, a Fibonacci retracement point, below which the 50-day EMA at 0.8467 has been tested. It is still possible the move down that started Apr 11, is a correction. A clear reversal would open 0.8738, the Apr 11 high and bull trigger. First key resistance is 0.8624, the Apr 21 high.
PIPELINE: Corporate Bond Update: $5B BoA 3Pt Launched
$24.9B Corporate issuance to price Tuesday
- Date $MM Issuer (Priced *, Launch #)
- 05/06 $5B #Bank of America $2.25B 4NC3 +85, $750M 4NC3 SOFR+111, $2B 11NC10 +115
- 05/06 $2.5B #PNC $1.25B 2NC1 +75, $1B 6NC5 +100
- 05/06 $2B #Grupo Nutresa $1B 5Y 8%, $1B 10Y 9%
- 05/06 $2B #Cummins Inc $300M +50, $700M +5Y +80, $1B 10Y +100
- 05/06 $1.75B #Starbucks $750M 3Y +77, $500M 5Y +90, $500M 10Y+110
- 05/06 $1.75B #Standard Chartered $1B 6NC5 +135, $750M 6NC5 SOFR+168
- 05/06 $1.75B #Biogen $400M +5Y +115, $650M 10Y +145, $700M 30Y +165
- 05/06 $1.75B #UBS 11NC10 +128
- 05/06 $1.5B #Deutsche Bank 6NC5 +140
- 05/06 $1B #Dominion Energy 3Y +87.5
- 05/06 $750B #Gold Fields 7Y +175
- 05/06 $650M #American Homes 4 Rent 5Y +117
- 05/06 $500M #Host Hotels & Resorts 7Y +180
- 05/06 $500M #SURA Asset Mgt 7Y +230
- 05/06 $500M *Shinhan Bank 5Y +72
- 05/06 $500M #LYB Int 10Y +187
- 05/06 $500M #Eaton WNG 5Y +65
