Oil Products End of Day Summary: Cracks Fall

Gasoline and diesel cracks are trading lower on the day, with gasoline consistently carrying losses throughout the session. Ongoing weakness in seasonal demand and robust US inventories continue to weigh on product cracks.

• US gasoline crack down -1.2$/bbl at 14.99$/bbl
• US ULSD crack down -1.2$/bbl at 37.77$/bbl
• Pemex is reviewing the installations of its new Olmeca Refinery in order to plan its start date, according to Reforma.
• China’s gasoil apparent consumption is forecast to rise 3.86% on the year in 2023 to 221.47m mt amid a gradual recovery following the pandemic, according to OilChem.
• Russia exports of diesel and gasoline recovered in November boosted by the end of refinery maintenance and the easing of fuel export restrictions.
• A segment of the Colonial Pipeline which is rarely full is booked for months amid a supply glut on the US Gulf Coast according to Bloomberg.
• ARA oil product stockpiles according to Insights Global: Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,185, -120, Naphtha: 197, -24, Gasoil: 1,770, +27, Fuel Oil: 1,256, -10, Jet Fuel: 712, -28
• Barge freight rates in NWE are increasing due to strike action in Belgium disrupting barge shipments, while closures on the Rhine due to high water levels will squeeze the market further, Argus said.
• India PPAC data: oil consumption was at 18.720 million tons in November, -2.0% y/y by products in % y/y: Diesel at 7.528mt, -3.0%, Gasoline at 3.129mt, +9.4%