Additional light crude runs in the US might remain in check going forwards, due to technical limitations (see Market Watch – Issue 02).

  • The OPEC+ cuts add some further pressure to medium-sour imports to the US which combined with the observed price strength in the very heavy segment speak against a quick fix to the refinery conundrum in the US.
  • A potential rebalancing of the gasoline/naphtha markets might be in the cards for the months ahead with gasoline supply in the US set to decline in the months ahead.
  • In a rather unusual turn of events, we might see US crude intake falling by some 275,000 b/d y-o-y over 2019 due to technical and economical replacement issues of heavy Venezuelan crude and the gasoline weakness already in place.