Oil Products End of Day Summary: Cracks Gain Ground

Gasoline cracks are ending the day higher, supported by a fall in US stocks. Inventory levels fell amid a drop in production and despite slightly higher imports and a pullback in implied demand on the week.

• US gasoline crack up 0.9$/bbl at 24.65$/bbl
• US ULSD crack up 0.1$/bbl at 24.39$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Jul 26Gasoline stocks -3,665 vs Exp -1,178, Implied mogas demand -206, Distillate stocks +1,534 vs Exp -580, Implied dist demand -136.
• The OPIS Gasoline Volume Survey suggests todays’ gasoline demand number from the EIA will resemble similar levels to two weeks ago at 8.78-million b/d.
• Offline capacity at U.S. oil refiners is expected to fall to 559kbpd in the week ending Aug 2, according to IIR Energy cited by Reuters.
• Cenovus Energy shut a unit at its 183,000 bpd Lima refinery in Ohio on Tuesday according to the company.
• Shandong’s new major Yulong refinery bought ~1.47m bbls of ESPO crude for September arrival according to Bloomberg sources, ahead of its startup.
• Weaker clean oil product margins could weigh on outflows from China in H2, Platts said.
• Russia’s gasoline prices rose 0.42% in the week July 23-29, Rosstat said, cited by Bloomberg.
• The UAE’s 67k b/d Fort refinery in Fujairah aims to restart production in August.
• Fujairah oil product stocks fell 3.1% in the week ended July 29 - a four-week low.
• India’s petroleum products production fell 1.5% y/y in May, Central Statistics Office showed.
• Global jet fuel demand is set to remain broadly flat for the week commencing July 30, BNEF said.
• Air passenger demand rose 9.1% on the year, IATA said.
• MNI COMMODITY WEEKLY: Major Global Refining Additions Highlight Ramp-Up Difficulties: Read Here