The EIA puts out a summary of their weekly stats in This Week in Petroleum and often they will include some interesting charts and analysis…
”U.S. gasoline and diesel crack spreads (the difference between the price of crude oil and the wholesale price of the petroleum product, which are used as estimates of refinery margins) diverged sharply in March as the 2019 novel coronavirus disease (COVID-19) spread. As COVID-19 mitigation efforts and travel restrictions were put in place, gasoline demand (as measured by product supplied) fell, pulling gasoline crack spreads down. During the same period, demand for diesel fuel remained relatively strong, which contributed to a sharp increase in diesel crack spreads. In April, diesel yields increased as demand fell, reducing the diesel crack spread, while gasoline demand began to increase. Since then, gasoline and diesel crack spreads in the U.S. Gulf Coast (home to about half of the U.S. refining capacity) have stabilized and moved together (Figure 1). However, high gasoline and distillate inventory levels are putting downward pressure on product prices and the crack spread, and the demand outlook remains uncertain.”
Leave a Reply