- Retail regular gasoline prices rose by 17.3c in the last four weeks to $3.628/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 0.7 MMBbl for the week ending April 5 and are 3% below the five-year average for this time of year
- Bullish US gasoline bets jump to three-year high ahead of summer (Bloomberg)
- Money managers increased net-long gasoline positions by 4,583 in the week ended April 2, reaching the highest levels since January 2021, as reported by the CFTC
- Long-only positions in gasoline hit their highest mark since early 2020, contributing to a surge in New York gasoline futures to a seven-month high
- Meanwhile, Implied gasoline demand on a four-week average basis declined for the first time in eight weeks
- However, high crude prices and summer driving season demand could further support gasoline prices
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- Retail diesel prices fell by 2.2c to $4.015/Gal in the last four weeks. 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 rose by 1.7 MMBbl for the week ending April 5 and are about 5% below the five-year average for this time of year
- Diesel flips to contango as distillate demand plunges
- The US diesel market is showing signs of weakness as the prompt month NY Harbor ULSD flipped to contango for the first time in nearly 10 months
- According to EIA data, the four-week average implied distillate demand has fallen nearly 7% over the last two weeks to hit the lowest seasonal level since 1996
- The poor demand looks to be impacting inventories, which recorded their largest weekly build of 1.7 MMBbl since January
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