May 31, 2024 18:19 GMT
Oil Products End of Day Summary: Cracks Down on Week
OIL PRODUCTS
Gasoline and diesel cracks are set to close the week down around 7% and 5% respectively. Rising refinery run rates are boosting global supplies while initial demand at the start of peak US driving season has underwhelmed.
- US gasoline crack up 1.6$/bbl at 24.47$/bbl
- US ULSD crack up 0.7$/bbl at 23.17$/bbl
- GasBuddy expects that in the next ~72 hours, the average price of diesel ($3.84/gal) will drop to its lowest level since Russia's invasion of Ukraine in 2022 ($3.80/gal).
- US crude oil refiners aim to operate 90% of their combined processing capacity for the remainder of Q2 after completing planned overhauls, Reuters said.
- The Phillips 66 Sweeny refinery, Texas, saw unit interruptions Thursday from a power issue it said via a regulatory filing.
- Lukoil’s NORSI refinery in Russia could resume operations of its CDU-6 primary unit and catalytic cracker in June: Reuters.
- Russian oil product exports from the Black Sea port of Tuapse in May were down 28.6% from initial plans at 1.093m mt: Reuters.
- A strike by workers set to lose their jobs at an ExxonMobil’s Port Jerome Gravechon petrochemical complex will remain suspended through June 4 according to union officials.
- Feasible levels of gasoline out of Nigeria’s ramping up Dangote refinery are estimated at 60kbd in June according to FGE
- Dangote’s commencement of jet fuel exports is weighing on European cargo prices, according to Argus.
- Combined California diesel stocks fell to the lowest level on record for the week ending May 24, according to Argus.
- Daily earnings for medium range tankers on the USGC-Continent route climbed by 14% to $38,257 May 31, a year-to-date high, according to Bloomberg citing Baltic Exchange data.
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