- Retail regular gasoline prices fell by 8.4c in the last four weeks to $3.575/Gal. About 56% 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 0.9 MMBbl for the week ending May 17 and are 2% below the five-year average for this time of year
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- Retail diesel prices fell by 12.7c to $3.879/Gal in the last four weeks. About 47% 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 0.4 MMBbl for the week ending May 17 and are about 7% below the five-year average for this time of year
- Diesel demand hits 26-year seasonal low in US on slowing economy (Bloomberg)
- US diesel demand fell to 3.67 MMBbl/d in March, the lowest seasonal level in 26 years, according to the EIA
- The EIA revised this figure downward, indicating potential risks for broader oil demand growth
- Weakening crude refining margins are noted globally, with declines observed in Asia and the US
- Dennis Kissler of BOK Financial Securities attributes the decline to slowed economies in Asia and the US and inflation impacting consumer spending
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