OIL PRODUCTS: Oil Products End of Day Summary: Cracks Lose Ground

US crack spreads have been weakening today. Pressure continues after EIA data showed lower gasoline and distillate demand as the holiday season ended.

• US gasoline crack down 0.6$/bbl at 11.84$/bbl
• US ULSD crack down 0.7$/bbl at 19.97$/bbl
• ARA oil product stockpiles according to Insights Global (kmt): Gasoline: 918, -57, Naphtha: 469, -22, Gasoil: 2,554, +109, Fuel Oil: 1,262, +20, Jet Fuel: 957, +52
• US gasoline demand ended the 2024 summer driving season well below pre-Covid pandemic levels, Argus said.
• Refined products supply in Louisiana appears stable and largely unaffected by Hurricane Francine, Argus said.
• The hydrocracker at Shell’s 233,702 b/d Norco, Louisiana refinery was shut by Hurricane Francine Sep. 11: Reuters.
• Exxon Mobil was increasing production at its 522.5k b/d Baton Rouge, Louisiana refinery Sep. 12, Reuters said.
• PBF Energy reported a mechanical issue with the hydrocracker at its 160k b/d Torrance refinery, California.
• Shell said on Wednesday that oil production at its Perdido, Auger, and Enchilada/Salsa fields remains shut due to Hurricane Francine.
• Italy’s ENI is to cut crude processing at its refineries amid a plunge in refinery cracks, highlighting a weak market, Bloomberg said.
• The Ineos Grangemouth refinery in Scotland is set to close in Q2 2025, after attempts by unions and the government to extend its operations failed.
• Woodside Energy shut in production of its Shenzi oil production facility in the U.S. Gulf of Mexico on Wednesday after its onshore refinery lost power due to Francine.
• The Eneos Negishi refinery near Tokyo, Japan, shut its 153,000 bpd CDU on September 9 for planned maintenance according to the company.
• The volume of fuel oil stockpiles in Singapore fell to its lowest since July 10.