Oil Products Mid-Day Summary: Cracks Regain Ground

Gasoline and diesel cracks have regained some ground during European morning trading, following yesterday’s sharp losses. Ongoing weakness in seasonal demand and robust US inventories continue to weigh on the spreads, however.

• RBOB JAN 24 up 2% at 2.04$/gal
• US gasoline crack up 0.6$/bbl at 15.3$/bbl
• Gasoil DEC 23 up 0.7% at 774.25$/mt
• US ULSD crack up 0.5$/bbl at 38.46$/bbl
• Preliminary Vortexa flows data suggests that China’s fuel oil imports, encompassing bunker fuel and refining feedstock, will surge to a new record of over 500kbd during the period of Dec 1-15.
• CDU capacity utilisation rates in December across China are expected to fall amid lagging winter demand, according to OilChem.
• Marathons Galveston Bay refinery Texas has returned its CDU to normal operation according to Reuters sources late Thursday.
• Pemex’s Dos Bocas refinery in Mexico is still facing delays after the government said it would be running at full capacity by December earlier in the year.
• India’s Gasoline and Jet fuel consumption rose in November, amid increased travel and industrial activity during the Diwali season, according to Argus.