September 28, 2022 – Bloomberg
(BN) US REFINERY INSIGHTS: Shutdowns, Maintenance Lift Crack Spreads
By: Barbara Powell, Chunzi Xu
Exacerbating matters: A strike by workers at France’s oil refineries is disrupting fuel supplies in Europe’s third-largest economy, further tightening global supplies and boosting diesel margins.
“It seems the cracks bottomed out as high prices depressed demand and now you have a pretty strong maintenance season and fairly large outage for Toledo,” said John Auers, managing director of Refined Fuels Analytics, a division of RBN Energy. “Supply-demand forces have moved crack spreads off their lows.”
The US gasoline crack rebounded to $21.15 Tuesday, the highest since late August. Margins are likely to strengthen as refinery maintenance continues and with BP Toledo expected offline until next year. While EIA data has shown some softening in demand, Auers said crack spreads are a better leading indicator of supply and demand.
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