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Oil Products End of Day Summary: Diesel Cracks Plummet

OIL PRODUCTS

Diesel cracks plummeted on the day to a new 12-month low, driven by EIA data showing four-week average US distillate demand well below seasonal normal levels and down 8.3% on the year.

  • US gasoline crack down 1.8$/bbl at 29.33$/bbl
  • US ULSD crack down 0.5$/bbl at 24.02$/bbl
  • EIA Weekly US Petroleum Summary - w/w change week ending Apr 26: Gasoline stocks +344 vs Exp -1,135, Implied mogas demand +195, Distillate stocks -732 vs Exp +355, Implied dist demand +126
  • Ukraine launched its latest round of drone attacks in the early hours of Wednesday morning – with reports of Ryazan refinery fires after the attacks.
  • A stagnant manufacturing sector is likely to keep the pressure on diesel markets, which are under pressure with the prompt structure in contango.
  • Shandong refiners in China are pivoting towards Russian fuel oil as a feedstock as competition for Russian Urals rises from Indian refiners and Chinese oil majors.
  • Marathon Petroleum is positioned to run near full utilisation this summer with Q2 rates for its refineries projected to average 94%, according to the CEO in the Q1 earnings call.
  • With the global trend shifting to lower-sulphur fuels, it is only a matter of time before WAF, NWE’s favourite location for >1,000ppm sulphur transport fuels starts to disappear: FGE.
  • Gasoline shortages persisted in Nigeria’s main cities April 30, leading to a sharp increase in prices, according to Reuters.
  • Oil product stocks in Fujairah stood at 20.796m bbl as of April 29, down 844k bbl, or 3.9% on the week, according to FedCom data cited by Platts.
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Diesel cracks plummeted on the day to a new 12-month low, driven by EIA data showing four-week average US distillate demand well below seasonal normal levels and down 8.3% on the year.

  • US gasoline crack down 1.8$/bbl at 29.33$/bbl
  • US ULSD crack down 0.5$/bbl at 24.02$/bbl
  • EIA Weekly US Petroleum Summary - w/w change week ending Apr 26: Gasoline stocks +344 vs Exp -1,135, Implied mogas demand +195, Distillate stocks -732 vs Exp +355, Implied dist demand +126
  • Ukraine launched its latest round of drone attacks in the early hours of Wednesday morning – with reports of Ryazan refinery fires after the attacks.
  • A stagnant manufacturing sector is likely to keep the pressure on diesel markets, which are under pressure with the prompt structure in contango.
  • Shandong refiners in China are pivoting towards Russian fuel oil as a feedstock as competition for Russian Urals rises from Indian refiners and Chinese oil majors.
  • Marathon Petroleum is positioned to run near full utilisation this summer with Q2 rates for its refineries projected to average 94%, according to the CEO in the Q1 earnings call.
  • With the global trend shifting to lower-sulphur fuels, it is only a matter of time before WAF, NWE’s favourite location for >1,000ppm sulphur transport fuels starts to disappear: FGE.
  • Gasoline shortages persisted in Nigeria’s main cities April 30, leading to a sharp increase in prices, according to Reuters.
  • Oil product stocks in Fujairah stood at 20.796m bbl as of April 29, down 844k bbl, or 3.9% on the week, according to FedCom data cited by Platts.