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Winter is coming: Chicago and New York clean product prices face upside risk

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The US is weeks away from the end of peak gasoline demand season. Refineries are gearing up for maintenance and seasonal gasoline demand decline. However, a few storm clouds loom over the market. We are currently tracking the following upside risks to US product crack spreads: • Could record butane exports and high Mt. Belvieu prices support higher than usual winter gasoline cracks? • How do US-China tariffs and the ongoing turmoil in Venezuela factor into the US octane market? • Is the US Gulf Coast's dominance in the Mexican export market being challenged? • How could severe PEMEX maintenance effect Q1-19 Chicago and New York crack spreads?

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    Winter is coming - Chicago and New York clean product prices face updside risk.pdf

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