Diesel and gasoline crack spreads are holding steady at the end of the week while crude holds small gains on the day. Low inventory levels despite a recent recovery and potential future supply risks from the EU ban on Russian products both remain supportive of product prices, but weak demand is limiting any upside moves.
- Gasoil curve backwardation has eased slightly today but spreads remain higher on the week with tight supplies expected beyond Feb.
- US refining capacity has mostly returned following the severe cold late in December which shut in 40% of Texas capacity. EIA refinery utilisation fell as low as 79.6% before recovering to 84.1% in the week to 6 Jan.
- Data released this week showed European ARA Gasoil stocks 10.6% below the five year average, US distillate stocks 16.9% below and Singapore Middle Distillates 17.8% below average.
- Gasoil FEB 23 up 0.5% at 925.25$/mt
- Gasoil FEB 23-MAR 23 down -2.25$/mt at 27$/mt
- Gasoil JUN 23-DEC 23 up 2.25$/mt at 38$/mt
- US gasoline crack down -0.1$/bbl at 25.49$/bbl
- US ULSD crack down -0.1$/bbl at 56.88$/bbl
- EU Gasoline-Brent up 0.7$/bbl at 12.36$/bbl
- EU Gasoil-Brent up 0.7$/bbl at 36.04$/bbl
