Cracking margins for Russian crude export blend Urals in the Amsterdam-Rotterdam-Antwerp region hit plus $10/barrel on Friday, the highest since September 2008 as a slide in differentials for the grade coupled with rising refined product cracks supported margins, trading sources said Monday.
Urals cracking margins in ARA were last higher on September 15 2008 when they hit $15.685/b.
A fall in Dated Brent, the benchmark as to which Urals is marked against has also supported margins, sources said.
"Margins are extremely good, rare enough to be noticed," a trader said.
The Eurobob gasoline crack, has been at record highs in recent weeks, as refinery turnarounds coupled with reduction in overall processing capacity due to refinery shutdowns has curtailed supplies of product.
In addition low sulfur fuel oil has been relatively strong, lending support to refining margins for the grade.
The low sulfur fuel oil crack reached its highest point in three months recently, assessed at minus $2.17/mt Thursday, Platts data shows, the highest since January 3, and higher than at any point during 2011. Since then the crack has fallen slightly, assessed Friday at minus $2.85/mt.
Traders say the continued closed arbitrage from the US, reduced cargoes from Brazil, have supported LSFO in the region.
