Oil Products End of Day Summary: Diesel Slides

Diesel prices fell post EIA data as Midwest diesel supplies have risen to the highest in two years. Implied gasoline demand showed a small gain on the week, while implied gasoline demand on a four-week basis also edged higher for the first time in three weeks.

• Gasoline inventories saw a small draw on the week, although below expectations. Distillates demand edged lower on the week.
• EIA Weekly US Petroleum Summary - w/w change week ending Aug 25: Gasoline stocks -214 vs Exp -720, Distillate stocks +1,235 vs Exp -943
• Chinese refiners will have used up 98% of their fuel export quota by the end of August according to OilChem.
• China’s diesel exports are estimated at around 1.1-1.2 million metric tons next month, according to Longzhong and JLC. Chinese refiners will have used up 98% of their fuel export quota by the end of August according to OilChem.
• Russian exports of refined oil products are poised to plummet to a 10-month low in August, according to Bloomberg.
• The Russian Government Plans to soon approve the special list of exporters of petroleum products as a measure to crack down on ‘gray’ exports, according to Interfax.
• In the US, gasoline demand is following its seasonal path lower supported by GasBuddy and OPIS figures. The later EIA report will give further sentiment. The last boost for US gasoline demand will come from the upcoming Labor Day weekend. The US has been pulling in higher gasoline flows from Europe to help support tight supplies – which are at a 14-week high.
• US gasoline crack up 0.7$/bbl at 26.55$/bbl
• US ULSD crack down -3.2$/bbl at 48.3$/bbl
• Gasoil SEP 23 down -3.2% at 901$/mt