Oil Products End of Day Summary: Cracks Rise on Day

Cracks are now gaining ground on the day as products hold their levels better than the underlying crude market. However, limited demand and healthier stock levels continue to add pressure.

• US gasoline crack up 0.7$/bbl at 23.79$/bbl
• US ULSD crack up 0.2$/bbl at 23.33$/bbl
• China’s oil product imports fell 33.2% from May to a 20-month low of 2.97m mt in June, GACC data cited by Platts said.
• Given the growth of exchange prices for fuel to record highs this year, Russia’s Federal Antimonopoly Service has proposed to reinstate the ban on gasoline exports in August, Kommersant’s sources said.
• Russian seaborne oil product exports fell to 8.894mn metric tons in June – down 4.2% m/m due to unplanned refinery maintenance according to Reuters.
• Phillips 66 reports broken seal at its 356,000 bpd, Wood River, Illinois refinery according to a filing.
• Saudi fuel oil imports rose in June to their highest levels since the end of 2020 to support high power demand during the summer.
• Nigeria’s 650k b/d Dangote refinery is to import a cargo of Brazilian crude, adding to the large number of overseas barrels it is taking, Bloomberg said.
• Asian refining margins for VLSFO saw a weekly decline as of July 12, driven by ample prompt supply, Reuters said.
• Substantial additions to both overall throughput capacity and secondary units have increased Iraq’s gasoline output, but it’s target of cutting imports to zero by 2025 remains elusive, MEES said.