Oil Products End of Day Summary: Cracks Lose Ground

Diesel and gasoline cracks have lost ground today. Diesel remains under pressure amid weaker global demand and robust product flows.

• US gasoline crack down 0.5$/bbl at 24.54$/bbl
• US ULSD crack down 0.2$/bbl at 23.43$/bbl
• Survey estimates for EIA inventory change in week to Aug. 2. Gasoline: -1.3m bbl (WSJ), -1m bbl (Reuters), -1.43m bbl (Bloomberg). Distillates: +0.5m bbl (WSJ), +0.2m bbl (Reuters), +0.33m bbl (Bloomberg).
• Motiva shut the FCC at its Port Arthur refinery on Monday after attempting to restart it. The unit developed another leak according to Reuters sources.
• Fuel production at Pemex’s Dos Bocas refinery will meet a fifth of the country’s needs within the next two weeks according to President Andres Manuel Lopez Obrador speaking with local media.
• Diamondback Energy raised its full-year oil and gas production estimates by about 4,000 barrels per day to between 462,000 boepd and 470,000 boepd as operational efficiencies helped boost output, according to Reuters.
• Slowing demand growth and rising supply is adding downside risk to US Gulf Coast and NW European jet fuel cracks vs the curve into 2025, according to Bank of America.
• Continued growth in air travel during peak summer is set to lift China’s jet fuel consumption by around 13.14% in July and August combined compared to 2023, OilChem said.
• Global Passenger jet fuel demand growth is tapering off as the peak summer travel season ends, BNEF said.
• Direct flights between China and the US are outpacing demand despite efforts to try and restore the routes to pre-pandemic levels.