Oil Product Summary at European Close: Gasoline Cracks Edge Down

Gasoline cracks have eased lower in response to the data with an unexpected build amid a slow increase in implied demand. Diesel cracks are slightly stronger to be stable on the day driven by a recovery in demand.

• US gasoline crack down 0.3$/bbl at 31$/bbl
• US ULSD crack down 0$/bbl at 28.1$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Mar 22: Gasoline stocks +1,299 vs Exp -1,685, Implied mogas demand -94, Distillate stocks -1,185 vs Exp +235, Implied dist demand +242, Tot product stocks +2,160
• EIA weekly data showed the four week average gasoline demand continue to rise following a trend from a low in mid January but at a slower rate than in previous weeks. Gasoline consumption has risen for six consecutive weeks up towards the key 9mbpd mark according to Bloomberg.
• Exxon Mobil’s 250kbpd Joliet refinery is preparing to shut several units starting in the first week of April for a full-plant turnaround, sources told Bloomberg.
• Bloomberg reported the Flint Hills Corpus Christi West Plant had a fire at the FCC on Wednesday.
• Oil product stockpiles at the Port of Fujairah declined by 1.3% last week to 19.785mn barrels as of 25 March, driven by declines in heavy distillates stocks, according to the Fujairah Oil Industry Zone data.
• Russian diesel exports are slipping and will inevitably fall further over the coming months according to Vortexa due to Russian refinery drone strikes.
• Iran is planning to lift its gasoline refining capacity over the coming years by upgrading existing refineries and building new capacity according to Argus.