Oil Products End of Day Summary: Gasoline Cracks Gain Ground

Diesel cracks are set for a net less on the week of around 6%, while gasoline is heading for a net gain of 7%. The AAA forecasts record travel over the July 4 holiday period which could help boost fuel demand.

• US gasoline crack up 0.9$/bbl at 23.95$/bbl
• US ULSD crack down 0.8$/bbl at 24.71$/bbl
• US manufacturing production has barely increased from pre-pandemic levels, explaining the ongoing weakness in diesel demand, according to Reuters.
• Ukrainian long range attack drones struck four Russian oil refineries in the early hours of June 21, according to Reuter’s citing Ukrainian military sources.
• Trafigura loaded diesel onto supertanker Plata Glory in the Middle East this week in the first VLCC transport of diesel in bulk to the West in nearly a year.
• China’s independent refiners in Shandong raised run rates slightly to 51.97% of capacity in the week to June 21 after falling to the lowest since April 2022 at 51.88% the previous week, according to OilChem.
• China’s Independent refineries’’ gasoline and gasoil production will fall 7.24% and 4.68% respectively on the month in June, according to OilChem models.
• Malaysia’s Hengyuan Refining Company 156kbpd Port Dickson refinery production is affected by an unplanned shutdown of its long residue catalytic cracking unit.
• Asia’s middle distillates markets flipped back to a contango structure on a paper basis June 21, with margins down on the week after the demand outlook turned more bearish for July, Reuters said.
• Russia’s refined product exports have not rebounded, contrary to market expectations, despite the restart of its refineries, according to Vortexa. The exports could see limited growth in the near-term with focus on meeting rising domestic demand.
• US jet fuel demand is leading among refined products as summer gets underway, according to BNEF.