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OIL PRODUCTS: Mid-Day Oil Products Summary: Diesel Crack Rises

OIL PRODUCTS

Diesel cracks are ticking up today, although a weakening of US implied demand limits upside pressure. The four-week average distillates demand fell again to the lowest since August to remain below the seasonal range lows.

  • US gasoline crack down 0.1$/bbl at 13.15$/bbl
  • US ULSD crack up 0.1$/bbl at 23.38$/bbl
  • The global diesel market will likely find price support in 2025 from the closure of about 1% of refining capacity, analysts told Reuters. This will offset the current weakness and structural downward pressure as the world shifts to cleaner fuels.
  • FGE expects diesel demand to contract by 230k b/d year-on-year over Jan-Dec amid forecasts that the northern hemisphere winter will be the coldest in 10 years and cut road fuel use.
  • Citgo’s 165kbpd Corpus Christi refinery in Texas reported emissions from its no.2 FCCU, according to a Texas Commission on Environmental Quality filling on Dec. 11.
  • Singapore total oil inventories rose for a sixth straight week by 1.62mbbl in the week to Dec. 11 to 44.68mbbl, according to Enterprise data.

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