Oil Products End of Day Summary: Diesel Crack Volatile

The US diesel crack reversed its gains during European hours in a volatile trading session. The diesel crack has been trading between $40.163/b and $41.986/b during the day. Higher inventories and weaker demand due to the end harvest season are likely to put pressure on cracks.

• The US gasoline crack traded higher on the day although softened from its peak of $14.56/b. Gasoline is continuing a gradual recovery.
• US ULSD crack down -0.7$/bbl at 40.6$/bbl
• US gasoline crack up 0.3/bbl at 14.2$/bbl
• The per capital US fuel consumption is expected to the lowest in two decades according to EIA. Total demand is seen at 8.83mbpd due to higher prices and cost of living pressures although a smaller drop than previously expected.
• The Russian government is discussing with oil companies to lift the ban on some gasoline exports, Russia’s Energy Minister confirmed, cited by Interfax.
• Russia’s oil product exports are showing signs of recovery driven by fuel oil and jet fuel following export restrictions and seasonal maintenance.
• Russian diesel is no longer competitive in Brazil, Petrobras CEO Jean Paul Prates said.
• Profit margins at China’s independent refiners turned negative in late October for the first time since early January driven by higher crude prices and weakening demand for diesel and gasoline according to JLC.
• Fujairah oil product stockpiles rose 4.8% in the week ended Nov. 6 to 17.873mn bbls according to Fujairah Oil Industry Zone data.
• US gasoline demand Nov. 7 was 5.7% below the same day in the previous week, according to GasBuddy’s Patrick De Haan, putting it around 4% below last week’s average.
• MNI COMMODITY ANALYSIS: Slipping China Refinery Runs Rattling Oil Markets - Full piece here: https://enews.marketnews.com/ct/x/pjJscQPaxL0I6agydx8iEw~k1zZ8KXr-kA8x6nECMX1ptIPjO1OcQ