USGC refining margins lost momentum heading into December as product cracks pulled back from mid-November highs. Diesel — the key driver of strength earlier in the month — spiked to $47.34/bbl on November 18 but then slid to $32.34/bbl by December 1, as seasonal demand softened and supply concerns eased. Gasoline cracks followed a more modest arc, rising steadily through the first half of November before giving back gains and ending near $18.75/bbl by December 1. With both products weakening, the USGC 3-2-1 crack spread retreated from just over $31.56/bbl on November 18 to $23.25/bbl by December 1.
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- Analyst Insight
USGC 3-2-1 Crack Spread Cools but Remains Strong
The USGC 3-2-1 crack spread has cooled from its spring highs, but refining margins remain exceptionally strong. June's average crack spread is running more than 100% above year-ago levels, supported by elevated gasoline and diesel cracks.
- Analyst Insight
USGC Crack Spread Climbs as Diesel Margins Surge
USGC refining margins strengthened again in August as surging diesel cracks pushed the 3-2-1 crack spread to an average of $65/bbl, more than two-and-a-half times its year-ago level.
- Analyst Insight
Diesel Cracks Soar Above $100/bbl to Record High
Diesel is taking the wheel of the refining barrel. As discussed in today’s Tradeview Report, the benchmark 3-2-1 crack edged just $0.52/bbl higher last week to $66.36/bbl, but that modest headline move masks a much more dramatic shift underneath.
