Mid-Day Oil Products Summary: Gasoline Cracks Tick Higher

Gasoline cracks are ticking up today after yesterday’s losses. While four-week implied demand edged higher last week, it remains below all recent years except 2020.

• US gasoline crack up 0.4$/bbl at 27.79$/bbl
• US ULSD crack up 0.3$/bbl at 25.47$/bbl
• Exxon Mobil plans maintenance at its 270kbpd Fawley oil refinery in the UK in the autumn, according to Bloomberg sources.
• Exxon Mobil’s Baton Rouge 523kbd refinery shut its 110kbd Pipestill 9 crude unit and several associated units for planned work according to Bloomberg sources.
• It is expected that CDU capacity utilisation rates at China’s domestic refineries will average 68.58% in May, down 1.3 percentage points on the month, and 3.05 percentage points on the year, OilChem said.
• China’s Independent Refiners are likely to cut their fuel oil imports in May amid weak cracking margins and higher import costs, according to Platts.
• China’s refined oil production in June is expected to rise both on the month and on the year, according to OilChem.
• China saw more than 1.3 billion passenger trips over the five-day Labour Day holiday that began on May 1 - 2.1% higher than a year earlier according to state media Xinhua reports.
• Russia’s Bashkortostan petrochemical plant was hit with a drone according to the regional governor Radiy Khabirov.