US asphalt strength to continue into H2.

摘要

For the past year, a barrel of asphalt in the US has been trading at a premium to heavy crude, fuel oil No. 6 3 sulfur and coker yield values with New Jersey barge FOB asphalt trading at a $17.87/bbl premium to Fuel oil No. 6 3.sulfur in New York Harbor as of mid-July. On multiple occasions, New Jersey barge FOB asphalt pricing was even at a premium to Brent crude, highlighting just how strong asphalt in the US has been over the last 12 months. This strength is expected to continue into H2 2015 due to a number of factors: historically tight price differentials between heavy and light crude; as strong gasoline crack spreads during H1 2015; growth in tight oil processing; and the increase in heavy Canadian crude processing at a number of US refineries that reduce volumes of resids.