Product Markets and Refinery Operations
OPEC Monthly Oil Market Report – September 2017
Product markets in the
displayed a solid performance in August, with all product cracks recording healthy
gains m-o-m, apart from fuel oil.
crack spread against WTI gained more than $3.8/b compared with the previous
month’s level to average $28.4/b in August. Hurricane Harvey hit the USGC during the last week of August
and its impact on gasoline prices over the monthly average was considerable. The gasoline crack spread
had actually been declining in the middle of August before skyrocketing during and after Hurricane Harvey at
the end of August. Based on initial weekly data, demand for gasoline was at 9.7 mb/d in August, indicating
very healthy demand during the summer driving season. This is approximately 54 tb/d higher than the month
of August 2016.
Graph 6 - 3: US Gulf crack spread vs. WTI
For middle distillates, the US Gulf Coast
crack averaged around $12.0/b, adding more than $2.3/b
from the previous month
crack spread also rose sharply, adding close to $5/b to reach
$18.9/b from the previous months’ levels.
demand, including jet/kerosene, stood at around
6.0 mb/d based on weekly data in August, higher than in July and around 0.7 mb/d higher than the same
month a year earlier. As such, the cracked spread rallied on rising demand and outages curtailed product
bottom of the barrel,
the USGC high sulphur
fuel oil crack
declined by $0.4/b to average around
minus $3.5/b in August. The fuel oil market declined on easing demand, which fell by around 74 tb/d m-o-m
based on weekly data.
Sources: Argus Media and OPEC Secretariat.