Most US refining margins moved higher for the week ended July 21 as global demand for US gasoline and diesel remains strong, an analysis from S&P Global Commodity Insights showed July 24.
US refineries are finishing their ramp-up to full rates following a heavier-than-normal maintenance season, eclipsing restarts from around the globe. With ongoing refinery downtime in other regions like Latin America and Asia expected to continue through August, export demand for US refined products is expected to stay robust.
As of July 24, US exports of clean products in the month is averaging 83.45 million barrels, or 2.692 million b/d, marking the highest export volumes since October 2018, according to Kpler data.
USGC margins buoyed by export demand
US Gulf Coast refiners, where most US refined product exports originate, were the main beneficiary of the strong global demand. Cracking margins for local crude WTI MEH averaged $18.21/b for the week ended July 21, a gain of $2.66/b from the week earlier
USGC coking margins for Colombian Castilla crude averaged $12.70/b for the week ended July 21, up from $10.55/b the week earlier.
Weaker local demand for the Colombian crude from planned work at a key refinery increased crude availability, and refinery downtime increased the need for imports to meet local demand to make up for lost product.
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