Oil Products End of Day Summary: Cracks Climb

US gasoline and diesel cracks remain stronger today, as product markets hold up better than a more bearish crude complex.

• US gasoline crack up 1.4$/bbl at 25.31$/bbl
• US ULSD crack up 0.8$/bbl at 22.85$/bbl
• The OPIS survey of U.S. gasoline volumes pumped at retail suggests a low demand figure for last week at “well under 9-million b/d” according to its head of research Tom Kloza.
• President Biden’s election campaign could get a boost from OPEC+’s decision to gradually unwind its voluntary cuts, helping ease gasoline prices.
• Marathon’s 133k b/d El Paso refinery in Texas reported an upset in the FCCU causing the wet gas compressor to trip, according to Reuters, citing a Texas Commission on Environmental Quality filing.
• Oil processing at Mexico’s Pemex domestic refineries were curtailed in April to 58.4% after fires at two facilities, according to Bloomberg based on company data.
• Talks on the sale of Shell’s 32.5% stake in the MiRO refinery in Germany’s Karlsruhe to Czech state-owned MERO have ended without an agreement, according to Reuters.
• Crude storage capacity utilization rates at independent refineries in China’s Shandong Province averaged 43.9% in the week to May 29, up just 0.08% on the week and down 3.88% on the year, according to OilChem.
• China’s refined oil exports stood at 2.85m mt in May according to shipping schedules cited by OilChem, up just 0.01m mt on the month.
• Global implied jet fuel demand in the week commencing June 4 is set to rise as travel ramps up towards the peak summer season, according to BNEF.