![]() ![]() In Singapore, inventories had increased by +2 million barrels by early June 2023 compared with June 2022 but were still -2.5 million barrels (-23% or -1.16 standard deviations) below the 10-year average.In Europe, distillate inventories had increased by +32 million barrels at the end of May 2023 compared with their low point at the end of June 2022, but were still -32 million barrels (-8% or -1.00 standard deviations) below the prior 10-year seasonal average.The gross margin for making European gas oil from Brent (both delivered in December 2023) fell to $114 per tonne from $254 over the same period.īut over the last 4-6 weeks, diesel and gas oil cracks have stabilised and recovered slightly, as inventories have remained lower than expected a few months ago: diesel from Brent (both delivered in December 2023) fell to $172 per tonne in late April from $316 in October 2022. The gross refining margin for making U.S. The resulting rise in inventories has taken some heat out of the market and halved refining margins for diesel and gas oil compared with the record peak in October 2022.Ĭhartbook: Global distillate stocks and prices LONDON, June 13 (Reuters) - Global distillate fuel oil cracks have strengthened slightly over the last month as inventories have not risen as much as expected given the scale of the manufacturing and freight downturn across the major economies.ĭistillate fuel oils such as diesel and gas oil are mostly used for freight transport, manufacturing, construction and construction, with smaller quantities for residential and commercial heating.įuel consumption and inventories are correlated with the business cycle, especially in the merchandise rather than services sector of the economy.ĭistillate consumption across North America and Europe has been slowing since the middle of 2022 in response to the downturn in manufacturing and freight activity.Īt the same time, Russia has continued to export distillate fuel oil despite sanctions imposed by the United States and the European Union averting a severe supply disruption.
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