Oil Products End of Day Summary: Cracks Heading Higher

Diesel cracks are approaching US close trading higher on the day. Gasoline cracks are also rising on the day but have eased back from their intraday high of $17.874/b. Gasoline is supported by a US inventory draw and an increase in implied demand yesterday.

• US gasoline crack up 0.5$/bbl at 17$/bbl
• US ULSD crack down 0$/bbl at 34.81$/bbl
• At least four tankers shipping diesel and jet fuel from the Middle East and India to Europe are diverting around the Cape of Good Hope, according to Reuters.
• Waterborne deliveries of residual fuel oil from the USGC are set for their lowest month since May 2020, as Panama delays hamper long haul arrivals, according to Argus.
• EIA Data: Total oil demand was higher on the month at 20.68mb/d in October compared to 20.09mb/d in September and 20.01mb/d in October 2022.
• Change in US oil demand y/y by product in kbpd: Gasoline +287 to 9,094, Distillate -96 to 4,067, Jet fuel +129 to 1,688.
• Increasing refinery runs are expected to raise diesel exports from major western ports in Russia delivered by pipeline by almost a fifth in January according to Bloomberg.
• Nigeria’s 650k b/d Dangote refinery has received its third crude cargo of 1m bbl, taking its total deliveries to 3m bbl, according to Africa Global Media.
• China has released its first batch of 2024 LSFO quotas totaling 8m mt, according to OilChem.