Oil Products End of Day Summary: Cracks Weaken

Diesel and gasoline cracks are edging down today, as the gains in underlying crude outpace those of products. Diesel and gasoline markets remain well supplied globally.

• US gasoline crack down 0.7$/bbl at 23.9$/bbl
• US ULSD crack down 0.1$/bbl at 23.57$/bbl
• ULSD JUL 24 up 1.8% at 2.39$/gal
• RBOB JUL 24 up 0.8% at 2.4$/gal
• U.S. retail gasoline demand rose 2.7% for the week ending June 8 and modelled at 8.884mb/d but was flat to the four-week moving average, according to GasBuddy demand data.
• ULSD JUL 24 up 0.8% at 2.37$/gal ICE Gasoil net long fund positioning fell to the least bullish since January and Nymex diesel fell to a net short position and the most bearish since November 2020 as EIA data shows demand remains below seasonal norms.
• Falling prices for middle distillates in Germany led to a year-to-date high for heating oil sales, although logistical difficulties continued after recent flooding, Argus said.
• The 264kb/d Lyondell Houston refinery placed plant 3 on circulation to stabilize operations after a process upset, according to Texas Commission on Environmental Quality.
• Chinese refiners are set to receive lower volumes of Saudi crude in July compared to June, according to Bloomberg sources.
• Global jet fuel demand in the week commencing June 11 is set to rise, continuing the previous week’s growth, according to BNEF.
• Global airline passenger capacity is set to rise to 118.06m seats in the seven days commencing from June 17, OAG said.