Mid-Day Oil Products Summary: Diesel Continues Downtrend

Diesel and gasoline crack spreads have been drifting lower this month amid healthy global supply and tepid demand. Diesel has continued that trend this morning, despite signs of falling output from China and the potential for some upcoming gasoil demand.

• US gasoline crack up 0.1$/bbl at 20.61$/bbl
• US ULSD crack down 0.4$/bbl at 20.95$/bbl
• Russian refiners have boosted processed volumes this month as Gazprom ramps up output according to Kommersant reports.
• ExxonMobil reported a process unit upset at its Joliet, Illinois refinery on Aug.17 according to a regulatory filing.
• China's gasoline exports fell 35.7% y/y in July and diesel exports fell 41% y/y to the lowest since June 2023, customs data showed, as refiners lowered crude runs amid weakening profit margins and soft domestic demand.
• China's total exports of refined oil products fell 6% y/y to 4.98m tons for July led by gasoline and diesel, General Administration of Customs showed cited by Reuters.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to remain stable in the week to Aug. 22 according to OilChem, amid no planned overhauls or production resumptions.
• Weekly CDU capacity utilisation rates at China’s independent refineries are projected to continue rising for the next three weeks, amid improving profits, OilChem said.
• Shell Singapore has shut one CDU and other facilities at its 237,000-bpd refinery on Bukom island, Singapore, for scheduled maintenance according to a number of Reuters sources on Monday.
• Global airline passenger capacity is set to decline to 121.85m seats in the seven days commencing from Aug. 19, OAG said.
• Hong Kong based airline Cathay Pacific expect demand for aviation services such as air travel to receive further support throughput August, cited by Platts.