Oil Products End of Day Summary: Crack on the Rise

Gasoline and Diesel Cracks Continued to rise during US trading, although have softened from their intraday peak. Despite the likely rise on the day, fundamentals remain weak in the gasoline market amid low demand and ample supply.

• US gasoline crack up 1.1$/bbl at 11.92$/bbl
• US ULSD crack up 1.8$/bbl at 41.07$/bbl
• Front-month time spreads for diesel in Asia have also narrowed on signs of weaker demand in Europe with a weaker outlook due to softer consumption in Germany and France according to Bloomberg sources. Supplies from Asian refiners such as Reliance and BPCL are expected to increase with the return of facilities from planned maintenance.
• US retail automotive gasoline prices declined by 1.5% in the week ending Oct. 27 to $3.320/gal, according to the EIA.
• The weakness in USGC gasoline prices has made the region the cheapest source of gasoline for Nigeria for November delivery, according to Bloomberg citing Sparta commodities.
• China’s biggest oil and gas producer, Petrochina, said it expects the country’s oil product demand to rise more that 10% in Q4 from a year earlier.
• Russian oil products exports on 1-28 October fell to 2.2mbpd, the lowest level in 17 months, as export restrictions paired with seasonal refinery maintenance weighed on export, Vortexa data, cited by Bloomberg show.
• Marathon Petroleum’s 593kbpd Galveston Bay refinery in Texas is scheduled to end maintenance in 4Q23, from 1Q24 previously planned, the firm said, cited by Reuters.
• Kuwait’s KPC has issued an HSFO tender for loading between November and January according to Reuters sources.
• Kuwait’s fuel oil exports fell to 490,000 metric tons in October after hitting a record high of 720,000 tons in September according to Kpler figures – driven by lower volumes of very low sulphur fuel oil.