Oil Products End of Day Summary: Gasoline Cracks Slide

Gasoline cracks plummeted after EIA data showed a large and unexpected build in US inventories. Four-week gasoline implied demand dropped during the holiday period with the EIA data reflecting expectations from OPIS and GasBuddy.

• US gasoline crack down -1$/bbl at 16.39$/bbl
• US ULSD crack up 0.3$/bbl at 36.69$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Dec 29: Gasoline stocks +10,900 vs Exp -194, Implied mogas demand -1,214, Distillate stocks +10,090 vs Exp -112, Implied dist demand -1,319
• US gasoline pump prices are averaging $3.08/gal Jan. 04, according to GasBuddy, a fall of 4.2 cents/gal on last week’s average.
• ARA oil product stockpiles according to Insights global: Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 890, -29, Naphtha: 246, -22, Gasoil: 1,787, -38, Fuel Oil: 1,396, +110, Jet Fuel: 748, +51
• Kuwait’s Al Zour refinery issued a spot VLSFO tender Thursday – the first in three months according to Reuters sources.
• Diesel shipments from Russia’s Baltic Port of Primorsk rose in December to 460k b/d, according to Bloomberg.
• China’s Shandong-based Yulong Refinery is expected to start stable and on-spec production in 1H 2025 according to FGE.
• Limits to China’s diesel exports and low middle distillate stocks could support Singapore cracks in the near-term, according to Sparta’s analyst James Noel Beswick, cited by Bloomberg.