US Diesel Crack Spread Tumbles on Report of White House 90-Day Export Ban Plan; Gasoline Margin Rises
JH Kim
Summary
- A report that the White House is preparing a diesel export ban sent US diesel crack spreads sharply lower.
- By contrast, gasoline crack spreads rose on supply concerns tied to the drop in diesel margins.
- European gasoil crack spreads also rose as the market priced in the possibility of a decline in US diesel exports.
Forecast Trend Report by Period
A report that the White House is preparing a 90-day ban on US diesel exports sent US diesel refining margins sharply lower.
Walter Bloomberg reported on September 23 that the US diesel crack spread fell $12.70 a barrel to $97.85.
By contrast, the gasoline crack spread rose $2 a barrel to $47.41. The move reflected concern that if refiners cut output as diesel margins fall, gasoline supply could also decline.
European gasoil crack spreads also rose, apparently as the market priced in the possibility of a drop in US diesel exports.
JH Kim
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