Oil Products End of Day Summary: Cracks Rising

US cracks have strengthened during the day, likely boosted by a drop in crude prices and in the case of diesel, a reversal of some of the losses during the previous week. Gasoline demand is forecast to have risen slightly the previous week, according to GasBuddy.

• US gasoline crack up 1.4$/bbl at 16.27$/bbl
• US ULSD crack up 1$/bbl at 38.65$/bbl
• GasBuddy models put US gasoline demand in the week to Dec. 2 at an average of 8.478m b/d, Patrick De Haan, head of petroleum analysis at GasBuddy said on X. This is up 2.1% on the previous week, but 0.3% below the four-week average, based on GasBuddy’s data.
• Increasing bottlenecks at the Panama Canal have forced at least one US diesel tanker to sail to Asia via the southern tip of South America, according to Bloomberg, likely bolstering freight costs.
• Seaborne diesel and gasoil exports from Russia rose 8.5% on the month in November to 2.8m mt, according to Reuters.
• Kuwait’s Al Zour refinery is running its third and final CDU – increasing maximum capacity to 615,000 bpd as it ramps up according to the official KIPIC X account on Sunday.
• OIL PRODUCTS - The regrade jet fuel premium over gasoil in Asia is likely to ease back from the five-year high of 2.20$/bbl on Nov 29, according to FGE.
• Global regrade spreads have shifted into positive territory for the first time since February amid diesel selloffs and an aviation recovery according to Kpler.
• Global Airline Capacity has been largely stable in the week commencing Dec. 4 at 103.4m seats, according to OAG.