Diesel deficit growing in the Atlantic basin

According to the API industry survey, US crude stocks built by 5.2 mb w/w, while Cushing stocks dropped by 2.2 mb, lending support to the greater availability of crude in PADD3 and the Atlantic basin. Indeed, crude stocks are expected to build slightly in the US for the month of October, in line with the refiners’ turnaround season. This partially explains why ICE Brent front-month time spreads continued to weaken throughout the last two weeks, now trading below 65 cents, despite outright prices creeping higher, due to strong inflation hedging pressures, as oil volatility and uncertainty prompted more aggressive hedging programs. On the product side, gasoline stocks are expected to draw by 4.5 mb and distillates by 2.7 mb, pushing lower the total diesel inventories in the Atlantic basin, while the natural gas crisis in Europe effectively reduces diesel supplies due to high hydrocracking costs.

EnergyScan - Oil market news
Share this news :

You might also read :

ES-oil
February 2, 2022

What can OPEC do?

Brent 1st-nearby price is rather stable, just below $90/b. The market is not expecting much from the OPEC+ meeting today. A further production increase of 400kb/d is…
ES-gas
March 7, 2022

Prices rose to all-time highs

European gas prices rose to new all-time highs on Friday. Although Russian supply continues to flow (even increasing to 267 mm cm/day on average on…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet? 

[booked-calendar]