Oil Products End of Day Summary: Diesel Cracks Rise

Diesel Crack spreads rose on the day, having found support from tight supplies during the current refinery maintenance season while global inventories remain below normal.

• US ULSD crack up 1.1$/bbl at 46.65$/bbl
• US gasoline crack up 0.2$/bbl at 9.16$/bbl
• US Retail prices for both diesel and gasoline fell in the week to Oct. 13, according to EIA data.
• Russian seaborne diesel exports fell by 20% to about 1.1 million metric tons in the first 15 days of October vs the same period September according to LSEG.
• Pemex shut a 270,000 bpd CDU at its Deer Park refinery, Texas on Monday because of a damaged process line.
• CDU capacity at China’s independent refineries is likely to peak by 2025, according to OilChem.
• China fuel exports are expected to remain strong in October due to recent export quotas and firm profit margins driven by diesel.
• Freight rates for barges moving products such as diesel on the Rhine have climbed to a seven-month high, amid low water levels, according to Bloomberg. Current freight rates for gasoil barges on the Rhine to inland storage and refineries is EUR 55/mt, the highest since March 3.
• Jet fuel demand is to continue its decline in the week to Oct. 23, led by a fall in Asia, according to BNEF.