Oil Products End of Day Summary: Gasoline Crack Plunges

Gasoline cracks have furthered their losses during the day amid signs of weak US demand. Despite edging higher on the week, four-week implied demand remains below all recent years except 2020. A small, unexpected build in stocks adds additional downside.

• US gasoline crack down 1$/bbl at 27.22$/bbl
• US ULSD crack down 0.1$/bbl at 24.86$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending May 03: Gasoline stocks +915 vs Exp -1,255, Implied mogas demand +179, Distillate stocks +560 vs Exp -1,098, Implied dist demand -189.
• The Russian Energy Ministry proposed to lift the ban on gasoline exports for May-June due to oversaturation of the domestic market, according to Kommersant.
• Russia’s Energy Ministry said the nation’s oil refineries have restored output of products to seasonal normal levels after an increase in output in April, the BBC reported.
• Russia’s gasoline production in the seven days to May 5 is down 4.4% on the week at 780.6k mt, according to Rosstat, cited by Bloomberg.
• China’s Shandong refiners are bringing forward planned maintenance due to bearish margins - curtailing imports of discounted crude.
• Independent U.S. refiner HF Sinclair plans refinery runs of between 620k-650kbpd in the Q2 2024
• A Petrobras refinery, the 201,280 bpd Alberto Pasqualini in Brazil is facing difficulty shipping fuel because of heavy flooding.
• Fujairah oil product stockpiles dropped for a third consecutive week as of May 6 according to Fujairah Oil Industry Zone figures.
• The Middle East is on track to become the world’s largest consumer of road fuels and a major driver of demand growth in the coming decades, according to BNEF.