Oil Products End of Day Summary: Russia Ban Boosts Diesel

Diesel Continues to trade higher on the day following Russia’s decision to ban exports of the product but has softened from heights seen earlier in the day.

• Gasoil OCT 23 up 2% at 982.75$/mt
• ULSD OCT 23 up 1.2% at 3.37$/gal
• Gasoil OCT 23-NOV 23 up 2.25$/mt at 31$/mt
• EU Gasoil-Brent up 2.3$/bbl at 34.24$/bbl
• The Russian government has introduced a temporary ban on the export of gasoline and diesel fuel effective immediately to stabilize the domestic market according to the government’s press service.
• Russia’s Deputy PM will hold a meeting with the leaders of Russian oil companies Friday to discuss the domestic fuel market, according to Interfax.
• Turkish diesel imports were less that 300kbd at the start of the year, reaching just over 500kbd in July – supported by extra Russian barrels. A significant portion of this was then re-exported to Europe.
• US gasoline demand jumped 9.5% Sep. 21 compared with the same time last week, according to GasBuddy. The week to date gasoline demand is now 3.7% above the previous week’s demand level.
• Oil product stocks in ARA according to Insights global - Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,326, -89, Naphtha: 183, -19, Gasoil: 1,912, +12, Fuel Oil: 1,078, -72, Jet Fuel: 713, +25
• Russian seaborne diesel and gasoil exports on 1-20 September stood at around 1.7mn tons, down by almost 30% compared with the same period in August, LSEG data showed.
• Oman’s Duqm refinery has completed its start-up processes and aims to begin commercial operations by the end of 2023, according to Zawya.
• Refining margins are expected to remain elevated in the near term due to tight fuel supplies and high consumer demand according to Exxon Mobil.
• Shell is trying to restart its shutdown hydrocracking unit at Pernis by September 25 according to IIR reports of traders familiar with the matter.
• European oil refinery output rose 1% on the month in August to 9.73m b/d, according to Euroilstock data and reported via Reuters.