Mid-Day Oil Products Summary: Cracks Find Support

Gasoline and diesel cracks are finding support today but remain down on the week. Support comes from a slight increase in both gasoline and distillate demand in yesterday’s EIA data. However, four-week implied demand for both gasoline and distillates however remains a concern and below all recent years except for 2020.

• US gasoline crack up 0.7$/bbl at 26.89$/bbl
• US ULSD crack up 0.5$/bbl at 23.59$/bbl
• Nigeria’s 650,000 bpd Dangote refinery is seeking million of barrels of US WTI over the next year as it ramps up operations according to documents seen by Bloomberg.
• Europe has received a cargo of 90kt low-sulphur straight run fuel (LSSR) produced at Nigeria’s Dangote refinery.
• Russia’s seaborne oil product exports fell 14.6% in April m/m to 8.415mn metric tons due to refinery maintenance, drone damage and export bans according to Reuters.
• ExxonMobil confirmed its 250,000 bpd Joliet refinery in Illinois has completed planned maintenance and is in the process of restarting operations.
• Pemex’s Tula refinery in Mexico has been ordered by environmental authorities to reduce processing because of poor air quality in the local area.
• Inventories of middle-distillates in Singapore - the Asian distribution hub - have fallen to their lowest level since early March, while fuel oil stocks fell to a two-week low
• Fuel oil inventories fell 7.89% w/w to 19.115 million barrels (3.01 million metric tons).
• India’s diesel and gasoline sales rose in the first half of May compared to April levels, data from state-run Indian Oil and Bharat Petroleum and Hindustan Petroleum showed.