Oil Products End of Day Summary: Gasoline Crack Recoups Losses

Gasoline cracks have rebounded from earlier losses to approach the US close trading higher. Support likely comes from a rising oil complex on the day and hopes that near-term Fed rate cuts could boost demand.

• US gasoline crack up 0.2$/bbl at 25.13$/bbl
• US ULSD crack up 0.8$/bbl at 23.46$/bbl
• US gasoline demand’s revival after hitting a nadir in April is now abating, although demand continues to look robust for June, according to BNEF.
• U.S. retail gasoline prices could rise to nearly $4/gal in October if the Hurricane Season is extreme according to Goldman Sachs.
• US diesel prices have fallen to their lowest level since Feb. 2022, prior to Russia’s invasion of Ukraine, according to GasBuddy’s Patrick De Haan via X.
• ARA Inventory, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 890, -103, Naphtha: 517, +64, Gasoil: 2,257, +32, Fuel Oil: 1,585, +39, Jet Fuel: 911, +40
• A fire has been extinguished at the Novoshakhtinsk oil refinery in Russia's Rostov region which had been attacked by a Ukrainian drone.
• Onshore fuel oil stocks in Singapore rose for a second straight week, climbing 7.7% to 18.86m bbl in the week ended June 5.
• China’s implied refinery runs declined for the third straight month to 14.5mbd in May, marking a year-on-year contraction for four consecutive months according to Vortexa calculations.
• China’s road congestion continued to be stable in the week to June 5, ticking up around 1%, according to BNEF. This put congestion levels at around 139% of January 2023 levels.
• Crude storage capacity utilisation rates are seen at 44.1% in the week to June 7, up 0.2 percentage points on the week.