Oil Products End of Day Summary: Cracks Diverge

Diesel and Gasoline cracks have taken divergent trajectories on the day, with the former softening, while gasoline cracks have surged 10% since yesterday. Diesel is easing amid expectations of softer winter demand and healthier stocks.

• US gasoline crack up 1.7$/bbl at 17.44$/bbl
• US ULSD crack down -0.5$/bbl at 37.35$/bbl
• The worldwide shortage of diesel and other distillate fuels has begun easing amid accumulating stocks, according to Reuters analyst John Kemp.
• Latest oil products stockpiles in independent storages in ARA, according to Insights Global. Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,053, -132, Naphtha: 285, +88, Gasoil: 1,788, +18, Fuel Oil: 1,205, -51, Jet Fuel: 728, +16
• The latest monthly IEA report points to “materially weaker” global refinery runs in Q4 than expected.
• Exxon’s Beaumont refinery, Texas will begin a multi-unit turnaround from January 1, according to Bloomberg sources.
• Asia-Pacific international air travel is catching that of other regions despite the continued slow pace of China recovery according to Association of Asia Pacific Airlines (AAPA) figures.
• Finland’s Neste is planning a major turnaround at its 206kbpd Porvoo refinery during April-June 2024, the firm said in a statement.
• CDU capacity utilisation rates at China’s teapot refineries averaged 64.3% in the week to Dec. 14, up 0.95 percentage points on the week, according to OilChem.