Oil Products End of Day Summary: Diesel Crack Reverses Some Losses

Diesel and gasoline cracks regained some of their losses during US trading hours, although remain lower amid a build in US stocks. Despite the stock build, inventories continue to remain low, while supply is squeezed by Russia’s export ban.

• US gasoline crack down -2$/bbl at 13.58$/bbl
• US ULSD crack down -0.7$/bbl at 43.11$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Sep 22: Gasoline stocks +1,027 vs Exp -140, Implied mogas demand +209, Distillate stocks +398 vs Exp -640, Implied dist demand -194
• China's gasoline, diesel and jet fuel exports may rise next month to 4.02mn tons as state-owned refiners capitalize on good margins and some western demand, while international flights recover, industry sources and analysts said.
• Gasoline demand in China looks set to peak in 2023 as electric vehicles become more popular and given the rapid elimination of commercial cars and increase in fuel efficiency according to OilChem.
• Asia’s exports of ultra-low-sulfur diesel to Europe are on track to reach a record this month, Kpler data show.
• Systematic measures will soon be taken that will have a long-term effect, Russia’s Deputy PM said in a meeting with Vladimir Putin.
• Mechanisms akin to those used to regulate fertilizer exports could be applied to manage the situation on the domestic market for petroleum products, Russian President Vladimir Putin said told government members.
• Gasoline production in Russia during the week to Sep. 24 rose by 1.4% compared to the previous week to 791.3k mt, according to Rosstat. Production of diesel fell during the week to Sep. 24, down 1.5% to 1.549m mt.
• Russia’s diesel supplies to the domestic market could fall in October despite the current ban on its export, according to according to Mikhail Turukalov, an independent US-based oil-products analyst.
• New York diesel exports have stepped up since Russia banned fuel exports last week – shipping out three cargoes carrying more than a combined 1mn bbls over that time according to Kpler.
• Mexico’s retail dieses prices could rise in October, following Russia’s temporary ban on diesel and gasoline exports, as the country imports around 65% of its diesel needs according to Argusmedia.