OIL PRODUCTS: Oil Products Summary at European Close: Cracks Rise

May-23 15:30

Gasoline cracks are stronger today amid signs of a recovery in demand ahead of the start of the traditional peak travel season. Diesel cracks are also stronger amid improved US manufacturing data.

  • US gasoline crack up 0.3$/bbl at 26.35$/bbl
  • US ULSD crack up 0.7$/bbl at 25.97$/bbl
  • Russian VGO seaborne exports slipped 10% in April m/m to about 3.32 million tons according to LSEG due to idled capacity for maintenance and technical outages due to drone attacks.
  • Imports of fuel oil to Saudi Arabia are heading towards the highest volume since November 2020, preliminary Kpler data shows.
  • Indian refiners have cut their use of dirty tankers to export diesel to Europe in May, according to Reuters, after volumes hit a two-year high in April.
  • Indian use of crude oil vessels to move refined products to European markets has slipped in May having hit a near two-year high in April vessel tracking data showed.
  • Singapore’s onshore fuel oil stocks fell to a 5.5 year low in the week ended May 22. Middle distillate inventories were up 8% on the week to 10.9m bbl, while light end stockpiles were down 5% to 14.5m bbl.
  • Iraq’s SOMO has offered around 82,000 metric tons (610,900 barrels) of gasoil term supplies for export within a three-month delivery window.

Historical bullets

US TSYS: US TSY 42D AUCTION: NON-COMP BIDS $327 MLN FROM $65.000 BLN TOTAL

Apr-23 15:15
  • US TSY 42D AUCTION: NON-COMP BIDS $327 MLN FROM $65.000 BLN TOTAL

PIPELINE: $1.5B CDP 5Y Launched

Apr-23 14:58
  • Date $MM Issuer (Priced *, Launch #)
  • 4/23 $1.5B #CDP (Italian bank) 5Y +145 (book nearly $10B)
  • 4/23 $Benchmark Citibank 2Y +70a, 2Y SOFR, 10Y +125a
  • 4/23 $Benchmark Canada Gov Int Bond 5Y +10
  • 4/23 $Benchmark CK Hutchinson 5Y +80, 10Y +100
  • 4/23 $Benchmark Abu Dhabi 5Y +40a, 10Y +50a, 30Y +95a
  • 4/23 $Benchmark Kuwait Int Bank Reg S 5.5Y Sukuk investor calls

CANADA: USDCAD Clears Support At 20-Day EMA And Expiries Mostly Lower

Apr-23 14:57
  • USDCAD touching a low of 1.3656 has breached support at 1.3671 (20-day EMA) following the broader post-US PMI moves.
  • It opens next support at 1.3595 (50-day EMA) even if technical trends have suggested the pullback is corrective.
  • The Can-US 2Y yield differential sits 2.5bps higher on the day, at -69bps now ~9.5bps higher than the close after last week's soft CAD CPI.
  • CAD underperforms peers owing to its US linkages, only outperforming USD and JPY on the day.
  • Tomorrow sees Canadian retail sales and the minutes from the BoC Apr 10 decision.
  • The NY cut lands between the two, with larger expiries generally grouped lower than spot: 1.3565 ($404m), 1.3570 ($402m), 1.3576 ($471m), 1.3600 ($495m), 1.3650 ($425m) and 1.3680 ($770m).

Support at 20- and 50-day EMAs (green, pink)Source: Bloomberg