Oil Products: Mexico Remains Intent on Fuel Independence

OIL PRODUCTS END OF DAY - Diesel and gasoline crack spreads are holding steady today amid a declining trend in place since early July driven by weak demand.

• US gasoline crack up 0.1$/bbl at 23.17$/bbl
• US ULSD crack down -0.1$/bbl at 21.58$/bbl
• Calcasieu Refining Company has halted operations at the 135.5kb/d Lake Charles refinery, Louisiana, after a chemical overflow caused heavy flaring, according to Reuters citing a local media report on July 18.
• ExxonMobil’s Joliet refining recorded a flaring event indicating it may be trying to restart following a power outage earlier this week.
• Sinochem has shut in two of its three east China oil refineries for an indefinite maintenance period, according to Reuters sources amid poor margins due to high crude oil costs and weak fuel demand.
• Japan has decided to exempt refiners from raising refining capacity July-September to help alleviate jet fuel shortages spurred by high summer travel demand and refineries under maintenance.
• European refinery output rose 7.3% m/m in June to 9.86mn bpd according to Euroilstock. It was 4.4% higher y/y.
• Russian oil processing is on track to reach the highest since January as capacity returns from seasonal maintenance and Ukrainian attacks according to Bloomberg sources.
• Mexico's Pemex plans to cut fuel imports to 52kbpd in September and 20kbpd in Q1 2025, according to CEO Octavio Romero Oropeza on July 19, cited by Reuters.