Diesel Margins Slide as G7 Announces 100 Million Barrel Stocks Release

AI Summary

The G7 announced a release of 100 million barrels of crude oil and diesel over four months, pushing down middle-distillate refining margins. ICE gasoil crack spreads fell to about $70 per barrel from as high as $85, while reduced risk of a U.S. diesel-export ban also weighed on prices.

The G7 announcement of a release of 100 million barrels of crude oil and diesel has pressured down middle distillate refinery margins, which had hit record highs last month. The start of stock releases over the next four months and the reduced risk of a U.S. ban on diesel exports sent the ICE gasoil crack down to about $70 per barrel now, from as high as $85 a barrel in the middle of last week, Warren Patterson, Head of Commodities Strategy at ING, said on in a note on Monday. Crack spreads are indicators of the profitability of refining crude…