Oil Products End of Day Summary: Cracks Slip Back

Gasoline and diesel cracks are headed for US close trading lower within the previous three-day range. Diesel cracks have been pulling back after reaching the highest since early April on July 2.

• EU Gasoline-Brent down 0.1$/bbl at 16.28$/bbl
• US gasoline crack down 0.5$/bbl at 24.48$/bbl
• GasBuddy data is supportive of a strong gasoline demand uptick in the U.S. for the 4th of July holiday travel. Agencies like AAA had forecast record road travel levels for the holiday.
• Several Gulf of Mexico producers have shut in production ahead of hurricane Beryl’s arrival to the region.
• A coker at Lyondell Basell’s 263,776 bpd Houston refinery was operating at a reduced production levels after a fire on Tuesday according to Reuters sources.
• ARA oil product stocks according to Insights Global: Inventory type: Gasoline: 1,109, -15, Naphtha: 462, -11, Gasoil: 2,184, -13, Fuel Oil: 1,422, -103, Jet Fuel: 1,022, +102
• Chinese state oil companies have been told by the government to add 8m mt (around 60mn bbls) of crude to the country’s emergency stockpiles, Vortexa said.
• China’s traffic levels climbed by another 2% in the week to July 3, according to BNEF.
• Average CDU utilisation rates among independent refineries dropped by 0.4 percentage points on the week to 50.5% July 4: OilChem data.
• Onshore fuel oil stockpiles at the key trading hub of Singapore rose 1.6% on the week to 19.60m bbl (3.09m mt) as of July 3, according to Reuters.
• Malaysia’s Hengyuan Refining Company 156kbpd Port Dickson refinery completed repairs at the long residue catalytic cracking unit (LRCCU) on June 30, according to Argus.