Oil Products End of Day Summary: Diesel Cracks Weaken

Diesel crack spreads are ending the day trading lower, eroding most of last week’s gains. Tepid summer demand, ample supply, and weaker Eurozone manufacturing data are adding downside.

• US gasoline crack down 0.7$/bbl at 23.86$/bbl
• US ULSD crack down 0.9$/bbl at 24.75$/bbl
• U.S. retail gasoline demand rose 0.6% for the week ending July 27 (Sun-Sat), according to GasBuddy estimates. Demand was estimated at 8.91mbpd.
• ExxonMobil has begun the restart of its Joliet refinery in Illinois according to Bloomberg communication with officials.
• Nigeria is facing gasoline shortages again as NNPC faces issues supplying volumes to local traders and depots.
• Libya’s NOC denied holding talks with Nigeria’s Dangote refinery for crude supply.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to rise in the week to Aug. 1 OilChem said.
• Chinese refiners and fuel suppliers are expecting to export 3.27mn tons of oil products in August according to OilChem – flat vs July.
• Russian ULSD exports from the Baltic Sea port of Primorsk are set to slip 16.4% m/m in August to 1.17mn metric tons according to Reuters sources.
• Demand for heating oil and road fuels rose on the week in Germany after falling ICE gasoil futures caused domestic distillate prices to slip, Argus said.
• The port of Fujairah is on track for record imports of LSFO this year after a key local refinery suffers outages according to MEES analysis.
• The jet fuel demand recovery has scope for a cyclical increase, with consumption still 15% or 1.2mb/d below pre-pandemic levels, according to Goldman Sachs cited by Bloomberg.
• Global airline passenger capacity is set to rise to 123.36m seats in the seven days commencing from July 29, OAG said.