Oil Products End of Day Summary: Cracks Mixed

Gasoline front month crack spreads have rebounded to be trading higher on the day, while diesel crack have held their losses. The market continues to weigh soft product demand against upcoming refinery outages.

• US gasoline crack up 0.3$/bbl at 18.63$/bbl
• US ULSD crack down -1.9$/bbl at 38.85$/bbl
• The US largest crude refiner Marathon Petroleum expects steady year-on-year demand for gasoline, diesel, and jet fuel, CEO Michael Hennigan said in an earnings call.
• India’s diesel exports to Europe are down by around 80% on the month to 33.4kbpd-58kbpd this month, Kpler, LSEG and Vortexa ship-tracking data showed, tracking the lowest in two years, as Red Sea disruptions shored up freight costs.
• Russia’s four-week average seaborne crude exports fell by about 250kb/d last week to about 3.09mb/d according to Bloomberg and about 200kbpd below Russia’s Q1 pledged target.
• Russia’s oil-processing rates remained relatively resilient in the latest week, according to Bloomberg.
• Russia’s largest oil producer Rosneft will redirect 100k mt of fuel oil to Tuapse from its Achinsk refinery in Siberia, according to XM, citing Reuters sources.
• Neste is ramping down its Porvoo refinery, Finland, ahead of strikes.
• Chinese independent refiners are reluctant to buy Iranian crude in February as the issues over pricing terms run into a second month according to Reuters sources.
• China’s planned exports of refined oil products, namely gasoline, gasoil, and jet fuel, are set to fall 13.65% on the month in Feb to 3.48m mt, according to OilChem.
• China’s gasoline prices are expected to fall in February amid softening market sentiment and falling consumption, according to OilChem.
• Global passenger jet fuel demand is set to rise for the first time in four weeks, supported by a rising appetite from Asia, according to BNEF.