Mid-Day Oil Products Summary: Diesel Cracks Drifting Down

Diesel crack spreads are drifting lower today. The crack found some support last week from rising implied US demand, low US and EU stocks, and a fall back in underlying crude levels. European demand still looks tepid amid weak Eurozone manufacturing data.

• US gasoline crack down 0.3$/bbl at 24.28$/bbl
• US ULSD crack down 0.4$/bbl at 25.23$/bbl
• Nigeria is facing gasoline shortages again as NNPC faces issues supplying volumes to local traders and depots. NNPC owes over $6bn to gasoline suppliers, impacting financing and access to cargoes.
• Libya’s NOC denied holding talks with Nigeria’s Dangote refinery for crude supply.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to rise in the week to Aug. 1 according to OilChem, as Dalian Xitai completed its maintenance.
• Chinese refiners and fuel suppliers are expecting to export 3.27mn tons of oil products in August according to OilChem – flat vs July.
• The jet fuel demand recovery has scope for a cyclical increase, with consumption still 15% or 1.2mb/d below pre-pandemic levels, according to Goldman Sachs cited by Bloomberg.
• Global airline passenger capacity is set to rise to 123.36m seats in the seven days commencing from July 29, OAG said.