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End of Day Oil Products Summary: Diesel Production Under Pressure

OIL PRODUCTS

Diesel markets are gaining ground amid continued tight supplies from low stocks and refinery maintenance season.

  • Gasoil OCT 23 up 1.5% at 991$/mt
  • Gasoil DEC 23-DEC 24 up 9$/mt at 116$/mt
  • US gasoline crack up 0.2$/bbl at 25.42$/bbl
  • US ULSD crack up 3.6$/bbl at 54.62$/bbl
  • ULSD OCT 23 up 2.7% at 3.42$/gal
  • EIA Weekly US Petroleum Summary - w/w change week ending Sep 08: Gasoline stocks +5,561 vs Exp -536; Distillate stocks +3,931 vs Exp +610; Implied dist demand -288
  • Limited supply of medium and heavy crudes to refiners due to Saudi Arabia and Russia curbs is helping to cut production of diesel fuels. Lower refining yields have been an important bullish factor in diesel prices, with supply also curbed by plant outages according to Wood Mackenzie
  • TotalEnergies' Feyzin oil refinery in France suffered a malfunction in a refinery unit at around 8pm local time Sep. 12, according to a report in Le Progres citing the company.
  • Middle Eastern gasoline supplies will stay tight in the fourth quarter due to regional refinery maintenance, while maintenance in Asia will support premiums, traders told Argusmedia.
  • Oman’s new 230kbpd Duqm oil refinery shipped out its first diesel cargo on Tuesday amid trial runs at the complex according to several trade sources and ship tracking data.

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