Oil Products End of Day Summary: Diesel Crack Lowest Since Late July

Diesel cracks extend the recent decline with the US front month crack-spread falling to the lowest since July 28, as demand concerns add to strong exports from China and India this month to offset the support from low inventories and refinery maintenance.

• US ULSD crack down -2$/bbl at 42.6$/bbl
• US gasoline crack up 0.2$/bbl at 15.17$/bbl
• The market impact of Russian diesel and gasoline exports ban appears to be relatively limited after Russia yesterday added some exclusions to the ban and with the measure widely expected to be short lived.
• The average price of US gasoline declined for the first time in two weeks Sep. 25, with further falls on Sep. 26, according to GasBuddy.
• US gasoline pump prices are averaging $3.795/gal Sep. 26, down 1.5 cents/gal on the previous day and down 5.1 cents/gal on the previous week’s average.
• Russia’s oil product exports hit a five-month high in the first 23 days of September, up 15% on August, according to Bloomberg and Vortexa.
• Exports of diesel from Russia’s Baltic port of Primorsk have slowed, a potential sign of the supply disruption caused by Russia’s ban on exports of the product.
• Nigeria’s 650kbpd Dangote oil refinery is likely to start operations in early 2024, FGE said in a note. Dangote plans to start operations in October.
• Petroineos’ Lavera refinery has halted a unit based on a community alert.