Gasoline Cracks Holding Gains Ahead of EIA Inventory Data

Gasoline cracks are holding onto gains from yesterday with support from low inventory levels, potential for lower run rates and with an expected demand boost heading into the summer driving season. EIA data due out later today is expected to show another draw in US inventories.

• IEA yesterday said throughput for oil refiners in Europe and the US will to be lower than previously expected in Q3 2023 after a drop in margins. Several Asian refiners are potentially considering run cuts from July due to the low margins.
• Taiwan’s FPCC has announced cuts from June. Processing rates will be reduced by 30kbpd in June due to weak margins. The refinery is currently operating at 480kbpd across three crude distillation units.
• US Gulf Coast refiners are increasing naphtha exports to Europe this month according to Kpler data as refinery utilisation has increased and with lower transatlantic shipping costs.
  • US 321 crack up 0.2$/bbl at 32.01$/bbl
  • US gasoline crack up 0.5$/bbl at 33.76$/bbl
  • US ULSD crack up 0.2$/bbl at 28.6$/bbl
  • EU Gasoline-Brent up 0.3$/bbl at 18.49$/bbl
  • EU Gasoil-Brent up 0.2$/bbl at 16.39$/bbl