Mid-Day Oil Products Summary: Cracks Rise on Week

Diesel and gasoline crack spreads have seen some support this week after the trend lower during the second half of May. Diesel cracks are up around 2% on the week, while gasoline cracks have risen by 3.2%.

• US gasoline crack up 0$/bbl at 25.27$/bbl
• US ULSD crack up 0.2$/bbl at 23.62$/bbl
• Global oil product inventories including gasoline saw an unusual increase in May adding a further bearish signal for the wider oil complex, according to FGE.
• The continued ramp up of oil processing capacities in the Middle East could be bearish for global refining margins, while limited its upside for crude, BNEF said.
• There are no fuel shortages on the Russian domestic fuel market and prices have fallen according to Deputy Prime Minister Alexander Novak said on Friday.
• PBF Energy’s 157kbpd Martinez refinery northeast of San Francisco, California restarted a unit on June 6 after a process trip during start-up, according to a filing with California Governor’s Office of Emergency Services.
• INEOS is commencing the start-up of one of its plants at Grangemouth the firm said via X.
• The average weekly capacity utilization rate of Shandong independent refineries was 52.41%, down 7.76 percentage points from the beginning of the year and 9.44 percentage points y/y.
• Fuel consumption in India, the world's third-biggest oil importer and consumer, edged higher m/m in May, according to PPAC data cited by Reuters with a boost from strong industrial activity and fuel demand during the general elections.
• Indonesia’s Pertamina Patra Niaga is seeking another 2.8 mn bbls of gasoil for June delivery in the spot market as ongoing issues at the Balikpapan refinery remain according to Reuters sources.