Oil Products Extend Gains on Low Stocks and Tight Supplies

Gasoline and diesel markets continue to strengthen today amid recent refinery disruptions and supported by low inventory levels.

• Data this week showed US distillate stocks 14.5% below the five year average, Singapore Middle Distillates inventories 32.7% below average and European ARA Gasoil stocks are 11.8% below. US gasoline stocks are about 7.4% below the five year average while European ARA gasoline stocks are 18.1% above normal.
• Valero Energy began restarting the 180k Memphis refinery on Thursday after a power outage on Tuesday according to Reuters reports.
• Repsol has restarted a CDU at its 120kb/d Coruna refinery after nearly three months offline, while a larger CDU along the coast in Bilbao was taken offline due to a fire on 26 July according to Argus.
• China will export 1.16mn tons of gasoline in August, an 28% increase from July while diesel exports in August will fall 25% m/m to 642k tons according to OilChem.
  • Gasoil AUG 23 up 2.6% at 876.5$/mt
  • ULSD AUG 23 up 1.6% at 2.96$/gal
  • EU Gasoil-Brent up 1.5$/bbl at 30.87$/bbl
  • US ULSD crack up 1.7$/bbl at 43.67$/bbl
  • RBOB AUG 23 up 1.4% at 2.99$/gal
  • EU Gasoline-Brent up 1.2$/bbl at 31.87$/bbl
  • US gasoline crack up 1.5$/bbl at 42.5$/bbl