End of Day Oil Products Summary: Diesel Cracks Soften

Diesel cracks have reversed the gains seen yesterday with tight supplies eased by reports of higher imports into Europe.

• US ULSD crack down -3.1$/bbl at 50.58$/bbl
• ULSD OCT 23 down -1% at 3.33$/gal
• Gasoil SEP 23 down -1.3% at 999$/mt
• US gasoline crack down -1.6$/bbl at 25.56$/bbl
• Chevrons expansion of the Tengiz Future Growth Project is set to be pushed back to the end of 2024.
• Venezuela's PDVSA has restarted the Cardon refinery’s catalytic cracker after being out of service for five weeks due to an outage and lack of feedstock.
• Unionized refinery workers at Phillips 66's 356kbpd Wood River refinery in Roxana, Illinois, are preparing to vote on a final contract proposal with the refiner on Wednesday, which could prevent industrial action at the site.
• The OPIS US gasoline volume survey suggests a demand slump for last week and expects this week’s EIA report will see an implied demand number of less than 9mbpd.
• Diesel and gasoline markets have steadied after a rally over the last couple of days driven by tight supply concerns. Low inventories, the upcoming refinery season and expected drop in Russian diesel output are adding to the upward pressure on product prices despite signs of lower gasoline demand at the end of the summer season.
• The US front month diesel crack has eased back from a high of nearly 55.3$/bbl while the gasoline crack recovered back up to 27.3$/bbl yesterday.
• European diesel imports are set to hit an 8-month high in H1 September amid higher flows from the East of Suez.