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Crack margins in mineral oil still spectacular



3:2:1 cracks on screen led by Heat crack are still very high in case you were wondering how Exxon cleared $56Billion in profits in 2022. Is the party winding down? When you look at crude prices you would not think that it reflects a high demand environment with WTI in a contango through April while Brent still showing backwardation throughout its curve. Perhaps this has to do with the delays in Exxon Beaumont refinery commissioning and general confusion on Russia sanction oil cap and impending EU ban on Russian petroleum products on Feb 5. Nevertheless, the trend we see in all products including Heating oil and ICE Gasoil is flattening of the curve if not outright contango - this would be indicating softening demand. China return to work this week and future exports of petroleum products made from cheap Russian crude will dominate rest of the quarter.



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