Oil Products End of Day Summary: Diesel Cracks Jump

US diesel cracks have continued to hold gains throughout the day, after spreads fell to their lowest levels since July. Upside remains limited by robust US inventories.

• US ULSD crack up 0.9$/bbl at 38.22$/bbl
• US gasoline crack down -0.7$/bbl at 14.52$/bbl
• US gasoline demand reaches the second lowest weekly level since early 2023, falling again last week by 1.5% and was 1.0% below the average of the last four weeks according to GasBuddy data.
• US gasoline prices may fall below $3/gal during the Christmas period, according to Down Jones and OPIS.
• Euroilstock: Europe 16 nations oil inventories fell by 4mn barrels to 1,008mn barrels in November. October data has been revised down by 8mn barrels.
• Russian diesel flows to Brazil are expected to remain steadily strong in early 2024, according to market sources, cited by Platts.
• Russia’s Deputy PM Alexander Novak has ordered oil producers and the Energy Ministry to prepare a plan for winter diesel output through to March, according to Bloomberg citing a Telegram post by the Russian government.
• Exxon Mobil plans to shut down a chemical unit Monday at its Port Jerome-Gravenchon refining and petchem complex, according to a community alert.
• Motiva’s Port Arthur Texas refinery plans to shut its 345k bpd VPS-5 crude unit the first week of January and begin maintenance on it January 8 according to Bloomberg sources.
• Global air passenger capacity is set to rise 1.3% in the week commencing Dec. 11 to 104.7m seats, according to OAG.
• A record number of 7.5mn people are expected to fly during 23 December and 1 January 2024, marking the busiest year-end flight travel season since at least 2000, AAA said.