Oil Products End of Day Summary: Diesel Plummets

Diesel markets have continued their decline throughout the day amid speculation that the Russian fuel export ban could be eased soon after Novak comments yesterday that the Russian market is currently well supplied.

• US ULSD crack down -4.8$/bbl at 37.7$/bbl
• ULSD NOV 23 down -5% at 2.87$/gal
• RBOB NOV 23 down -0.3% at 2.19$/gal
• US gasoline crack up 1.5$/bbl at 9.52$/bbl
• US manufacturers reported business activity is likely nearing its nadir and will likely return to growth in the next few months, stretching diesel supplies, according to Reuters.
• US average pump gasoline prices are falling on the week, down 9.3 cents/gal to $3.723/gal, according to GasBuddy.
• The EIA report this week showed sluggish gasoline demand in the US but other outlets counter the weakness.
• Russian exports of diesel and gasoline will be banned as long as necessary, Kremlin spokesman Dmitry Peskov said as reported by TASS. Following a meeting with oil companies, Russian PM Alexander Novak said that the domestic fuel market was in balance and being provided with the volumes it requires.
• Oil product stockpiles in ARA according to Insights Global: Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,344, +16, Naphtha: 220, +50, Gasoil: 1,915, -76, Fuel Oil: 1,035, -6, Jet Fuel: 782, +24
• US manufacturers reported business activity is likely nearing its nadir and will likely return to growth in the next few months, stretching diesel supplies, according to Reuters.
• The Petroineos Lavera refinery France is halting some units for planned maintenance based on a community alert but no further specifics have been given.
• Kuwait’s naphtha exports surged in September to a four year high – boosted by increased runs at KPC’s 615,000 bpd al-Zour refinery.