- Retail regular gasoline prices fell by 21.4c in the last four weeks to $3.534/Gal. About 51% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the RBOB-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Total motor gasoline inventories fell by 2.4 MMBbl/d for the week ending April 21 and are about 7% below the five-year average for this time of year
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- Retail diesel prices fell by 29.7c in the last four weeks to $3.883/Gal. About 45% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the NY Harbor ULSD-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Distillate fuel inventories fell by 0.6 MMBbl/d for the week ending April 21 and are about 12% below the five-year average for this time of year
- Retail diesel falls below $4/gal for the first time since February 2022
- Diesel usage in trucking has dropped significantly due to decreased manufacturing and consumer spending earlier this year
- Prices are expected to remain low until fall, when the start of crop harvesting and the heating season typically boost demand
- Despite the tightened inventory, market indicators suggest that traders are not overly worried about the scarcity of diesel
- Refiners are prioritizing gasoline production due to its profitability
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