Mid-Day Oil Products Summary: Gasoline Cracks Rangebound

Gasoline cracks are rangebound today, holding yesterday’s gains after a US stock draw. However, diesel cracks have pulled back slightly after reaching the highest since early April on July 2.

• EU Gasoline-Brent down 0$/bbl at 16.32$/bbl
• EU Gasoil-Brent down 0.4$/bbl at 20.46$/bbl
• The updated Insights Global European ARA product inventories will be released today around 15:15BST
• Near term European Gasoil time spreads are extending the recent decline to return to contango this week suggesting ample supplies are arriving at Europe.
• A number of Gulf of Mexico producers have shut in production ahead of hurricane Beryl’s arrival to the region.
• A coker at Lyondell Basell’s 263,776 bpd Houston refinery was operating at a reduced production levels after a fire on Tuesday according to Reuters sources.
• Chinese state oil companies have been told by the government to add 8mn metric tons (around 60mn bbls) of crude to the country’s emergency stockpiles according to Vortexa.
• China’s traffic levels climbed by another 2% in the week to July 3, according to BNEF.
• Onshore fuel oil stockpiles at the key trading hub of Singapore rose 1.6% on the week to 19.60m bbl (3.09m mt) as of July 3, according to Reuters.