Oil Products End of Day: Gasoline Cracks Rise

Gasoline cracks are now trading higher today, reversing earlier losses. While gasoline flat prices are down, it has held up better than the underlying crude, likely due to expectations of a US stock draw and improved demand.

• US ULSD crack down 0.5$/bbl at 23.03$/bbl
• US gasoline crack up 0.7$/bbl at 23.44$/bbl
• ULSD AUG 24 down 1.5% at 2.48$/gal
• RBOB AUG 24 down 0.2% at 2.49$/gal
• US Gasoline inventories likely fell by 1.3m bbl last week, according to a WSJ survey. Distillate inventories, are seen down by 0.4m bbl.
• US retail gasoline prices rose to $3.388/gal and diesel prices fell to $3.826/gal in the week to July 12, according to Bloomberg citing the EIA.
• The refineries of Al Zour (Kuwait), Dangote (Nigeria), and Duqm (Oman) increased clean product supplies by 700k b/d in June, according to Vortexa.
• Kuwait Petroleum offered 80k mt of HSFO for loading between July 29-30, according to Reuters sources.
• Chinese independent refinery utilisation rates are expected to remain low in July on poor margins.
• Chinese independent refiners’ consumption of Malaysian Blend in H1 2024 (mostly comprised of Iranian crudes) increased by 61.8% y/y to 11.18m mt, JLC said.
• Russia has sent ultra-low sulphur diesel for storage in Singapore and West Africa, as demand west of Suez has slowed, according to Reuters sources.
• The UK’s Stanlow refinery plans to boost spending on its site to provide more domestic fuel after Scotland’s Grangemouth plant closes next year.
• Private Indian refiner Nayara Energy is planning to shut a delayed coker and other units at its 400,000 bpd Vadinar refinery according to Reuters sources.
• India’s diesel and gasoline sales fell in the first 15 days of July compared to June levels.