Oil Product Summary: US Cracks Slip Ahead of Inventory Reports

US gasoline and diesel cracks have slipped ahead of Wednesday’s EIA weekly report and API release, after large draws were reported in recent weeks with demand concerns continuing to weigh on markets – despite record Thanksgiving Travel expected this week.

• US gasoline crack down -1$/bbl at 14.94$/bbl
• US ULSD crack down -0.2$/bbl at 42.16$/bbl
• This week API inventory data and EIA WPSR will be released at their regularly scheduled dates/times despite a holiday week in the US.
• Russia is not planning to lift current restrictions on winter diesel exports but considers easing measured during the summer months, Russia’s Energy Minister Nikolai Shulginov said, cited by Tass.
• The Middle East is expected to see 350kb/d of refining capacity out of service in December. Saudi Aramco’s 235kb/d Yanbu refinery and OQ’s 116kb/d Sohar refinery will be offline for scheduled turnarounds next month according to FGE.
• Kuwait’s 615,000 bpd Al Zour refinery is expected to be fully operational in “the next couple of weeks” according to a Bloomberg source this week.
• European diesel cracks are expected to rise and “re-open the East-West arbitrage window,” according to Kpler.
• Refined oil production in China is estimated to decline 4.3m tonnes or 10.8% m-o-m in November while CDU capacity utilization rates fall 4% to 71.6% according to OilChem.