Mid-Day Oil Products Summary: Cracks Up on Week

Cracks are headed for a net gain on the week amid a likely boost in US demand over the Independence Day holiday. Gasoline cracks are holding steady within the previous three-day range, but diesel cracks have been pulling back after reaching the highest since early April on July 2.

• US gasoline crack up 0.1$/bbl at 24.5$/bbl
• US ULSD crack down 0.3$/bbl at 25.89$/bbl
• After being hit by a range of refinery outages and delays at Dos Bocas, Mexico has returned back to imports of transportation fuels according to Vortexa figures.
• China’s independent refiners in Shandong reduced run rates to the lowest since April 2022 at 50.52% of capacity in the week to July 5, according to OilChem cited by Bloomberg.
• Chinese state-owned refiners are ramping up processing levels after scheduled maintenance but at a slower pace than anticipated due to weak margins according to Rystad.
• India’s state-owned Indian Oil (IOC) plans to close some refineries in the coming months for maintenance to take advantage of a lean period according to Bloomberg sources.
• Phillips 66 356kbd Wood River refinery, Missouri, had a process upset on Thursday according to a regulatory filing.
• Russia has enough gasoline and diesel supply to fully satisfy demand in the high season according to the Energy Ministry.