Oil Products End of Day Summary: Cracks Diverge

Diesel cracks are down on the day, although have been finding support this week following Red Sea diversions and refinery outages. However, gasoline cracks have shown a late surge, likely supported to the fall in crude.

• US gasoline crack up 0.7$/bbl at 18.36$/bbl
• US ULSD crack down -1.4$/bbl at 40.13$/bbl
• European imports of diesel are expected to decline well below 2023 levels in the first half of February with supply from India the lowest in two years.
• ARA product Stockpiles according to Insights Global. Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 948, +108, Naphtha: 304, -4, Gasoil: 1,958, +263, Fuel Oil: 1,397, -84 , Jet Fuel: 706, -33
• Phillips 66 plans to stop processing crude in February at its Rodeo, California refinery as it moves to renewable fuels.
• *BP WHITING REFINERY HAD POWER OUTAGE THURSDAY: CITY OF WHITING
• Diesel sales by India’s state-run refiners fell by 2.6% on the month to 6.568m tons in January according to company data via Bloomberg.
• Diversions away from the Red Sea due to Houthi attacks have triggered renewed price spikes in refining and freight markets, Goldman Sachs analysts said in a note, cited by Bloomberg.
• Goldman Sachs expect refinery capacity growth to remain in line with refined product demand growth during 2024-2025. Dec-Dec capacity growth is seen at 0.9m b/d in 2024 and 1.45m b/d in 2025.
• Russian oil product exports from the Black Sea port of Tuapse are set to fall by 59.1% month on month in February to 0.416mn tons, traders told Reuters.
• - MNI COMMODITY ANALYSIS: Sanctioned Barrel Outlook Under Question in 2024 – Full piece here: https://enews.marketnews.com/ct/x/pjJscQSPk-UI6a9idkt-Sw~k1zZ8KXr-kA8x6nDXZKtptIPjO1OcQ