China’s diesel exports put downward pressure on Asia-Pacific crack spreads (5/18/2016)

Distillate crack spreads (the difference between the prices of wholesale distillate and crude oil) in the Asia-Pacific region are down 37% year-to-date compared with the same period in 2015 (January 4 to May 16). Several factors behind the decline in crack spreads in the Asia-Pacific market are consistent with those in other global markets—tepid demand growth, high distillate stocks, and increased refinery runs. Particularly relevant to the Asia-Pacific market, however, is the emergence of China as a growing net exporter of diesel (a type of distillate fuel), which puts more product into a well-supplied market. ... More »