Oil Products End of Day Summary: Diesel Cracks Rally

Diesel cracks spreads rallied during US hours to reverse earlier losses and trade higher on the day, while gasoline cracks have furthered their losses.

• US gasoline crack down -0.4$/bbl at 18.08$/bbl
• US ULSD crack up 0.4$/bbl at 39.17$/bbl
• European gasoline remains “overall bearish” with “persistent length” and “inevitable export constraints” eventually limiting upside to regional cracks according to Kpler last week.
• Ineos halted the 110kbpd CDU at the 210kbpd Grangemouth refinery on 16 February according to WoodMackenzie.
• Marathon Petroleum’s 66kb/d Salt Lake City refinery in Utah has begun shutting units at its South End section for a multiunit turnaround according to Bloomberg sources.
• Petronor’s Bilbao refinery is halting its VB3 visbreaker unit (plant 3) for maintenance that will last around a month, according to press release.
• Shipments of diesel from Europe into Europe have fallen to their lowest levels since 2022 in February to date, as Houthi attacks on ships in the Red Sea disrupt international trade, according to Bloomberg.
• Russian oil processing rates stood at 5.16mbpd in the second week of February, down by 94kbpd on the week, sources told Bloomberg.
• Russia’s USt-Luga condensate processing facility partially restarted between February 8-14 according to Bloomberg sources.
• US average gasoline prices have risen for the fourth straight week, up 8.7 cents/gal to $3.26/gal, according to GasBuddy.
• Global implied jet fuel demand in the week to Feb. 26 is set to rise by 2.7% on the week to 6.26m b/d according to BNEF.