OIL PRODUCTS: Oil Products End of Day Summary: Gasoline Crack Under Pressure
Gasoline cracks are facing significant pressure from the surge in underlying oil prices, while gasoil cracks are higher today as the market prices in increased risk to Middle Eastern supplies.
- US gasoline crack down 1.7$/bbl at 20.53$/bbl
- US ULSD crack up 2$/bbl at 26.28$/bbl
- Marathon’s 100k b/d Canton refinery will start a 60-day turnaround in early July, Bloomberg said.
- Iran’s 700k b/d Abadan refinery and 110k b/d Tabriz refinery have not been attacked and are operating as normal, according to Argus reporter Nader Itayim.
- These statements corroborate earlier comments by Iran’s national oil company that there was no damage to its oil refineries or storage tanks in overnight attacks by Israel.
- Middle Eastern Gulf middle distillate supplies have been strong recently, while latest ARA data shows EU stocks still below normal.
- Egypt is boosting its diesel use in some power plants after Israel closed its 12 Bcm/y Leviathan offshore gas field, which largely exports to Jordan and Egypt
- MNI Commodities: Low Probability of Hormuz Impact – Download Full Report Here
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US TSY OPTIONS: Jun'25 2Y Ratio Call Spread
- 4,500 TUN5 103.75/1042x3 call spds, 4 net ref 103-15.5
EURGBP TECHS: Edges Off Lows
- RES 4: 0.8768 High Nov 20 ‘23
- RES 3: 0.8624/0.8738 High Apr 21/ High Apr 11 and the bull trigger
- RES 2: 0.8541/8557 High May 2 / High Apr 28
- RES 1: 0.8465 50-day EMA
- PRICE: 0.8434 @ 15:52 BST May 14
- SUP 1: 0.8403 Low May 12
- SUP 2: 0.8400 Round number support
- SUP 3: 0.8359 1.236 proj of the Apr 11 - 16 - 21 price swing
- SUP 4: 0.8316 Low Mar 28 and a key support
EURGBP is trading just above recent lows. The cross traded to a fresh, short-term cycle low Monday, strengthening a bearish theme. It has also cleared support at 0.8465, the 50-day EMA, signalling scope for a continuation lower. Sights are on 0.8415 next, a Fibonacci retracement. This level has been pierced, a clear break of it would open 0.8400 and below. Key near-term resistance is 0.8541, the May 2 high. A break of it is required to signal a potential reversal.
US: FED Reverse Repo Operation
RRP usage climbs to $165.024B this afternoon from $144.214B yesterday, total number of counterparties at 36. 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.
