- Retail regular gasoline prices fell by 6.6c in the last four weeks to $3.068/Gal. About 57% 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 rose by 3.1 MMBbl for the week ending January 12 and are slightly above the five-year average for this time of year
- Fuel tanker rates are soaring amid Red Sea disruption (Bloomberg)
- Freight costs for shipping gasoline from Northwest Europe to the US East Coast have nearly tripled to $38,000 per day since the start of the year
- Vessels are taking longer routes to avoid the Red Sea, contributing to the rise in shipping costs
- Meanwhile, gasoline imports into New York are projected to reach 144 KBbl/d, the highest for January since 2019
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- Retail diesel prices fell by 19.1c in the last four weeks to $3.838/Gal. About 44% 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 rose by 2.4 MMBbl for the week ending January 12 and are about 3% below the five-year average for this time of year
- US Gulf Coast refineries slow to recover from last week’s freeze (Bloomberg)
- Winter Storm Gerri impacted 15% of the US Gulf Coast's crude-processing capacity, with 1.4 MMBbl/d offline in PADD3 and 1.7 MMBbl/d across the US, down from 1.5 and 1.9 MMBbl/d respectively last week, according to Woodmac data
- TotalEnergies' Port Arthur refinery in Texas, with a capacity of 0.24 MMBbl/d, regained power on Jan 18 but remains idle after losing power on Jan 16
- The freeze's impact is compounded by routine winter-spring maintenance, with Motiva Enterprises' largest crude unit at their 0.63 MMBbl/d Port Arthur refinery, the 0.35 MMBbl/d CDU, shut since Jan 8
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