Asia-Pacific diesel cracks… EIA – Commodity Research Group

May 20, 2016 by Jim Colburn Leave a Comment

The EIA explains why Asian diesel cracks are under pressure:

“The decrease in Asian distillate crack spreads comes as Chinese exports of distillate began to increase rapidly in 2015 driven by structural shifts in China’s economy, which are reducing diesel demand, and by reforms to China’s refining sector, which are contributing to increased refinery utilization and diesel production. The confluence of these two factors is working to push Chinese diesel into the Asia-Pacific market and depressing crack spreads, which tends to narrow profit margins for refining companies.”

The link is here: http://www.eia.gov/petroleum/weekly/

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