Free Trial

Oil Products End of Day Summary: Gasoline Crack Recoups Losses

OIL PRODUCTS

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.
274 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

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.