Weak distillates challenge US refiners

摘要

Weak distillates margins continue to weigh on US refining feedstock markets,perpetuating price distortions between feedstocks and finished products heading into the fourth quarter.Heating oil prices have been consistently below vacuum gasoil(VGO)cash prices since April this year as the Covid-19 pandemic took a toll on oil products demand.A stronger recovery in gasoline markets meant VGO-a feedstock for fluid catalytic crackers(FCCs)which produces around 70pc gasoline and 30pc distillates-has closely tracked ultra-low sulphur diesel(ULSD)prices over the past few months,even venturing to premiums briefly in late September.