Oil Products End of Day Summary: Cracks Rally

Diesel and gasoline cracks have rallied today following large and unexpected US stocks draws driven by a recovery in implied demand.

• US gasoline crack up 0.2$/bbl at 23.49$/bbl
• US ULSD crack up 0.9$/bbl at 25.97$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Jul 19: Gasoline stocks -5,572 vs Exp +384: Implied mogas demand +673, Distillate stocks -2,753 vs Exp +549, Implied dist demand +276
• The Russian government may consider a ban on diesel exports if the fuel prices rise sharply, according to Kommersant sources.
• Russian output of petroleum products fell 3.3% on the year in H1 2024, Rosstat data cited by Bloomberg showed.
• ExxonMobil has restored sufficient power at its 251.8k b/d Joliet refinery in Illinois to begin the restart process after a Tornado took the facility offline July 15, Reuters said.
• Nigeria’s 650k b/d Dangote refinery has started production of ULSD, a company official said July 23, cited by Platts.
• European refining margins fell $3.80/b in Q2 and are down $7/b on 2023 levels due to a surge in runs which are set to exceed all-time highs later this year Vitol said.
• US diesel export loadings to Europe have surged to record highs in July as the trade arbitrage for USGC diesel to Europe remained robust, Platts said.
• India’s Reliance has received U.S. approval to import Venezuelan oil according to Reuters sources.
• Rystad suggest persistent tight balances for both crude and liquids, leading to significant stock draws.
• Port of Fujairah oil product stocks fell 8.3% w/w for the week ended July 22 according to Fujairah Oil Industry Zone data.
• MNI COMMODITY WEEKLY: https://enews.marketnews.com/ct/x/pjJscVOIle0I6a5kdR1zSw~k1zZ8KXr-kA8x6mUWpSlptIPjO1OcQ