Oil Products End of Day Summary: Cracks Continue Climb

Diesel and gasoline cracks are continuing to climb. Gains are driven by ongoing expectations of record levels of travel during the July 4 holiday period.

• US gasoline crack up 0.6$/bbl at 25.27$/bbl
• US ULSD crack up 0.9$/bbl at 27.27$/bbl
• The US Department of Energy said July 2 that it has completed awarding contract for the sale of 1m bbl of gasoline from the US managed stockpile in northeastern states, Reuters said.
• Drivers during the US Independence Day weekend are likely to see the lowest prices over the holiday period since 2021, according to GasBuddy.
• Exxon Mobil said its Gravenchon oil refinery in northern France is operating normally, despite a blockade by protesters in recent days, according to Bloomberg.
• A port officer strike at the Fos and Lavera ports in southern France has led to a suspension of tanker movements according to a shipping agent reported by Bloomberg.
• Russia's exports of ultra-low-sulphur diesel from the Baltic Sea port of Primorsk are expected at around 1.4 million metric tons July
• Japan’s Eneos Corp shut its 175,000 bpd CDU at its Kashima refinery on June 29 due to a system glitch the refiner said Tuesday.
• Japan’s Taiyo Oil Co has shut two CDUs late last month at its 138,000 bpd Shikoku refinery in western Japan for scheduled maintenance the company said Tuesday.
• A fire broke out at Idemitsu Kosan's Chiba refinery in Japan early on Tuesday according to the company without giving any further details.
• Japan’s largest refiner ENEOS has bought at least one rare prompt MR-sized jet fuel cargo for July loading, trade sources told Platts, likely an attempt to address Japan’s aviation fuel shortages.