Oil Products End of Day Summary: Cracks Extend Losses

Gasoline and distillate cracks have furthered their losses during US hours, adding to the decline which followed the EIA data. Distillate cracks are now at their lowest levels since June.

• US gasoline crack down -1.8$/bbl at 28.33$/bbl
• US ULSD crack down -2.7$/bbl at 31.58$/bbl
• EIA Weekly US Petroleum Summary to Feb. 23 - w/w change: Gasoline stocks -2,832 vs Exp -2,347, Implied mogas demand +267, Distillate stocks -510 vs Exp -2,386, Implied dist demand -404.
• An OPIS US gasoline demand survey indicates levels of about 8.4mn bpd last week. OPIS referred to the number as growing vs the week prior but lackluster vs historical levels.
• Oman’s recently inaugurated Duqm refinery may start processing more crude grades from the end of the year.
• The 149kbpd Borger refinery in Texas, owned by Phillips 66, is still operating despite ongoing wildfires in the region.
• Vertex Energy is planning a turnaround at its 88k b/d Mobile, Alabama, refinery in March.
• Valero will carry out maintenance at its Pembroke refinery in the UK in September, sources told Bloomberg.
• Russia’s gasoline export ban which will begin March 1 for six months is a preventative measure, according to the country’s deputy PM Alexander Novak, cited by Interfax. He also said that Russia is not considering a diesel export ban.
• The Americas will increasingly buy gasoline from Asia, as exports from the US Gulf Coast are expected to be limited: Sparta Commodities.