Mid-Day Oil Products Summary: Gasoline Cracks Edging Down

Gasoline front month crack spreads are softening this morning after rebounding late yesterday. Meanwhile, diesel cracks have ticked up ahead of the updated US stocks data today.

• US gasoline crack down -0.1$/bbl at 18.44$/bbl
• US ULSD crack up 0.3$/bbl at 39.08$/bbl
• Crude inventories in the ARA region fell again this week by 557kbbl to 44.91mbbl in the week to January 26 according to the latest Genscape data.
• Vortexa has flagged a significant decrease in clean petroleum product (CPP) tankers transiting the Suez because of Red Sea transit risks.
• Although vessel tracking firms have highlighted Russian oil product cargoes are still transiting the Red Sea despite the risks, Russia cargoes are also diverting around the Cape of Good Hope according to LSEG data.
• The Colonial Pipeline is preparing to introduce a 33.29 cents/b products loss allocation (PLA) charge to recover the cost of products lost to evaporation and pipeline mixing, according to Argus.
• Fujairah oil product stockpiles declined by 4.5% in the week to 29 January, driven by a 21% decline in jet fuel and other middle distillates inventories according to data from the Fujairah Oil Industry Zone.
• The ExxonMobil 191kbpd Rotterdam refinery is to shut for a turnaround from mid-February to late April according to Reuters.
• CHINA TO RAISE GASOLINE, DIESEL PRICES BY 200 YUAN PER TON:NDRC -bbg
• Air travel recovery in APAC continued in 2023 amid robust growth in international passenger demand and loosening restrictions, according to Argus.