Gasoline markets are facing a tough period that will only ease with the coming of spring. Demand is seasonally weak and refinery runs are high. Naphtha, a bright spot for light ends of late, has dimmed slightly as competition from LPG has picked up. Asian gasoline markets have plunged into contan..
Fuel oil markets remain uninspired despite some recent positive news out of Asia. South Korea suffered renewed nuclear power disruptions while the Indian courts lifted a ban on using of petcoke as feedstock. The market is well supplied in the near term, with inflows of West of Suez fuel oil into..
The conditions for a tight Q1 18 are drifting into place. In addition to heavy Middle Eastern turnarounds, Indian demand is set to pick up by 0.1 mb/d y/y in Q1 18, easily outpacing domestic supply growth, while fears of a flood of Chinese exports early next year are receding. Price-related deman..
The market has had a look at December gasoline balances and does not like what it sees. Stocks are on the rise and although refining margins in Europe have come under heavy pressure, US refineries are still going to run hard this month, particularly in PADD 2. Builds in PADD 3 will be kept under..
The fuel oil market is caught up in a soft patch. Supplies are not giving up any significant ground in key producing regions, as refiners maximise runs to capture still-strong margins, and the seasonal wind-down in maintenance from end-November will do nothing to alter this picture. September saw..
Over the past few weeks, gasoil timespreads have slumped into contango at the front while remaining firmly in backwardation across most of Q1 18. Part of this divergence can be attributed to over-zealous positioning, but maintenance deferrals, following the spike in margins after Hurricane Harvey..
This report marks the launch of our new European naphtha balances, supplementing our existing Asian naphtha balances.Very strong East of Suez gasoline demand has starved the US of imports over the last several weeks, but while relief is unlikely for a little while longer, the late-season Atlantic..
Fuel oil has been largely treading water for the past month, but relatively high stock levels at key pricing points mean there is little enthusiasm for aggressive positions in the near term. Looking ahead to 2018, however, the market is facing a renewed tightening of the supply side. The Russian..
Headline balances have deteriorated markedly but this obscures the divergent fortunes of different grades. ULSD markets continue to perform well and underlying fundamentals are strong. Higher sulphur grades, on the other hand, are coming under pressure. Rising supplies East of Suez are weighing o..
Gasoline markets have struggled despite the punishing blows from hurricane season. The market has been bracing for big stock draws in the US after Hurricane Harvey removed 30 mb of gasoline output but the reality has been more muted. Between 25 August and 29 September, gasoline inventories in PAD..
The fuel oil market is shifting to a more cautious posture. Longer-term bullish trends are intact, but in the short run, the positive news looks priced in, especially with East of Suez utility demand waning, leaving the market in need of a catalyst. Pakistan, a key standout for fuel oil demand gr..
Even before Hurricane Harvey deluged the Texas Gulf Coast, shuttering more than a dozen refineries in the process, the Atlantic basin diesel market had been tightening significantly. The storm can rightly be called the proximate cause of the rally in diesel cracks and timespreads over the last mo..
A month ago, the gasoline market was contemplating a tricky Q4 17 amid expectations that the switch to winter gasoline and surging US refinery runs would lead to a steady build in inventories as demand seasonally slowed. But then Hurricane Harvey knocked as much as 4 mb/d of refining capacity off..
For much of the summer, the main worry for the fuel oil market has been the supply response due to surging fuel oil cracks. Asian fuel oil supplies likely grew y/y in July by 44 thousand b/d, as refiners raised yields, but regional demand grew even faster, by 54 thousand b/d, as bunker demand in..
Atlantic basin gasoil markets are entering the autumn in a position of strength on the back of solid demand, unplanned global refinery outages, and Latin America’s recurrent refinery problems. In the case of Europe, ULSD looks tight even though imports of US diesel are set to jump to a record hig..