Ro_Patel
Nov 11, 6:35 PM
$VLO COO: Moving Gulf Coast crude to Asia now costs
$30 to
$35 a barrel, up from about
$5 a year ago, and that has widened discounts on heavy grades that Gulf refiners can buy close to home.
“Higher freight rates actually give us an advantage into the typical export markets into Latin America,”
Northwest European gasoline refining margins surged on Tuesday to the highest since mid-October to over
$36/barrel. European Low Sulphur Gasoil Brent Crack Spread for November 2026 settles at
$81.14 per barrel - running nearly triple historical norms
US Gulf Coast Gasoline
$22.29 / barrel over WTI. Standalone diesel crack spreads in NY Harbor are hovering at
$102.93/bbl, while the US Gulf Coast sits at
$90.41/bbl over WTI
EIA: Although we expect the US avg retail price of gasoline & diesel to decline in 2027, we raised our forecast for those prices from last month’s outlook. In our f/cast, the US retail diesel price avgs
$5.03/gallon next year, +12% higher than we f/cast last month. Gasoline prices avg
$3.73/gal, +5% higher than last month. We now assume global petroleum product markets will face continued supply constraints thru the end of 2027. These market conditions will support wider petroleum product crack spreads next year & incentivize elevated US refinery operations.
UN’s Independent International Commission of Inquiry on Ukraine following an investigation into Russian attacks on Ukrainian energy infrastructure since 2022 finds that Russia’s bombardment of Ukraine’s civilian power grid qualifies as a crime against humanity
Ukraine drone strikes have disrupted refineries representing roughly 30% of Russia's total oil-processing capacity since late October - 9 of Russia's 35 major refineries experienced disruptions over the past week
$PSX $XOM $SU $BP
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