Americas: Product Prices Dip But Europe's Tightness Beckons

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Fuel demand in the Americas continues to trend below pre-pandemic levels. At the same time, it has until recently remained stubborn relative to high prices. But through July, consumption has first wobbled and then dipped. In conjunction with a reversal in sentiment amid intensifying fears about a recession, this has sent both headline and pump prices skittering lower and eaten into crack spreads and refining margins. The pain may have peaked for now, but as the EU phases in an embargo on Russian crude and products and natural gas prices skyrocket, overseas pull on American and especially US products could intensify down the line as colder weather approaches. In addition, the market remains tight from a fundamental perspective. The lull may be short-lived.

Oil Products, Oil Demand, Oil Trade, Refining
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