Product Markets and Refinery Operations
OPEC Monthly Oil Market Report – August 2017
The grade 93 unleaded
crack spread gained more than $2/b compared with the previous month’s
level to average $24.26/b in July. The main factor supporting healthier gasoline crack spreads in July is solid
demand for gasoline during the summer driving season supporting total gasoline consumption, which
reached around 9.7 mb/d in July, approximately 130 tb/d higher than that for June and more than 110 tb/d
higher than that for July 2016. Second, declining gasoline inventory levels, which fell for six consecutive
weeks starting from mid-June, led to nationwide stock levels of around 10 mb/d lower than those witnessed
in July 2016. Finally, outages in Mexico and Europe also contributed to the rise in gasoline crack spreads.
Graph 6 - 3: US Gulf crack spread vs. WTI
The US Gulf Coast gasoil crack averaged around $9.6/b
, adding more than $2/b from
the previous month
crack spread increased most in July, adding close to $4/b to reach
13.7/b from the previous months’ level.
demand, including that for jet/kerosene, stood at
around 6 mb/d in July, marginally lower than in the previous month and around 600 tb/d higher than in the
same month a year earlier. Exports of diesel oil to Europe were supported, backed by freight rates.
Additionally, middle distillate stocks continued to trend lower than levels experienced in July 2016.
bottom of the barrel,
the US Gulf Coast high sulphur fuel oil crack gained around $2 to average
around minus $3/b in July. The fuel oil market continued to strengthen in July as stocks reached their lowest
point since 2015. Lower production volumes and higher export quantities were supported by healthy
Sources: Argus Media and OPEC Secretariat.