Oil Products End of Day Summary: Cracks Find Support

Diesel and gasoline cracks are climbing amid expectations of improving US demand ahead of the July 4 holiday period.

• US gasoline crack up 0.8$/bbl at 24.74$/bbl
• US ULSD crack up 1$/bbl at 26.24$/bbl
• July 4th Travel - TSA and AAA are forecasting record levels of travel in the U.S. for this week’s July 4 holiday.
• U.S. retail gasoline demand saw a drop of 1.1% for the week ending June 29 (Sun-Sat) according to GasBuddy data.
• The Russian government has allowed gasoline exports in July after stability in the domestic market supply according to government documents following the announcement last week.
• Nigeria’s 650k b/d Dangote refinery is boosting gasoil exports to WAF, taking market share away from European refiners, Reuters said.
• The strike at ExxonMobil’s Gravechon refinery in France is hampering fuel production according to the company.
• India’s diesel and gasoline sales rose in June compared to May levels, data from state-run Indian Oil and Bharat Petroleum and Hindustan Petroleum showed cited by Bloomberg.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to rise in the week to July 4 according to OilChem, as some refineries are likely to raise utilisation rates.
• China’s gasoline demand is projected to improve this week with rising use of vehicle air conditioning during summer weather.
• KIPIC confirmed in a post on X that a fire over the weekend in a storage area at its mega Al-Zour refinery in Kuwait was contained and had no impact on operations.
• Asia’s VLSFO market has softened today amid expectation of supply length in July, according to Reuters.
• Global airline passenger capacity is set to rise to 121.34m seats in the seven days commencing from July 1, OAG said.