Oil Products End of Day Summary: Cracks Rise

Diesel and gasoline crack spreads have added to their gains last week, bolstered by wider market support from shipping risks in the Red Sea.

• US gasoline crack up 0.3$/bbl at 18.17$/bbl
• US ULSD crack up 1.3$/bbl at 39.85$/bbl
• European gasoline export flows could change in 2024, as traders seek new outlets for the region’s growing oversupply, according to Argus.
• European gasoline arrivals in the US climbed to 195kbpd in the seven days to 14 December, up from 119kbpd in the week prior, according to bills of lading and ship-tracking data compiled by Bloomberg.
• US Gasoline demand is estimated at 8.5326mbpd in the week starting 10 December, up by 1.95% from the week prior and 1.3% above the four-week average according to GasBuddy via X.
• The 40kbpd ACU-2 CDU at TotalEnergies’ 238kbpd Port Arthur refinery remains shut three weeks after the end of the planned maintenance at the refinery, people familiar with the operations told Reuters.
• Brazil is preparing for a continued fall in gasoline imports in 2024, amid difficulties for domestic demand and increased local competitiveness of supply, according to Argus.
• Strong projected demand for jet fuel in 2024 is set to support clean tanker markets globally, according to Platts.
• Nigeria’s Dangote refinery is not expected to start commercial-scale refinery runs before Q3 2024, according to S&P Global analysts.
• Global passenger capacity is set to rise 2.3% to 107.1m seats in the week commencing Dec. 18, according to OAG data.
• Weak demand from gasoline blending and chemicals production are expected to drive weaker naphtha margins toward the end of December according to Kpler last week.
• Core clean product demand is projected to rise by approximately 1.1mbpd in 2024 according to Kpler.