Oil Products End of Day Summary: Cracks Weaken

Diesel and gasoline cracks are on track for day-on-day falls, with a near 6% drop in the latter. Both have tracked the decline in crude following the OPEC meeting, although diesel did briefly rebound into positive territory before retreating. Higher stocks and weak demand continue to add downside pressure.

• US gasoline crack down -0.9$/bbl at 15.52$/bbl
• US ULSD crack down -0.6$/bbl at 39.45$/bbl
• European ARA inventories change on the week according to Insights Global data: Gasoil: -102 mt to 1,743k mt, Gasoline: +102k mt to 1,305k mt, Fuel Oil: +3k at 1,266k mt, Jet Fuel: -43k mt to 740k mt, Naphtha: +11k mt to 221k mt.
• Global Spreads of jet fuel vs ULSD have flipped to premium the for the first time since February, according to Bloomberg citing Kpler.
• GASOLINE - The Russian Energy Ministry says the wholesale and retail domestic motor fuel market has stabilised and the trend is expected to remain long-term after the measures taken by the government in September and October according to Tass.
• Russian oil product exports are tracking higher in November after the government eased export restrictions and refinery runs recovered.
• Asia accounted for over 70% of Russia’s fuel oil arrivals in November – 10% higher than October according to Vortexa.
• Russian diesel imports into Brazil are expected to increase almost two-fold in December, according to Bloomberg, citing Vortexa data.
• China’ production of gasoline and gasoil is expected to each decline by around 10% on the month in November, according to OilChem.
• CDU capacity utilisation rates at China’s independent refineries were down 0.57 percentage points to average 63.64% in the week to Nov. 30, according to OilChem.