Refiners Costs: "The combination of tighter heavy crude and fuel oil supplies, as well as the seasonal rise in power generation demand is expected to push up fuel oil cracks in the weeks ahead," said Vortexa analyst Xavier Tang, referring to the spread between the price of crude and the refined product.
Crude price outlook: Morgan Stanley hiked its Q3 Brent crude outlook by $4 to $94 over geopolitical conflicts, while other analysts see a supply deficit of one million barrels per day in 2024 due to the prevailing OPEC cuts.
Brent crude futures last dropped 28 cents, or 0.3 per cent, to $89.14 per barrel, while US West Texas Intermediate crude futures fell 35 cents, or 0.4 per cent, to $84.88