OIL PRODUCTS: Oil Products End of Day Summary: Diesel Cracks Fall

US diesel cracks are seeing a little support from upcoming refinery maintenance season and the storm risks to Gulf coast refineries. However, gasoline cracks have gained ground as RBOB’s losses are outpaced by a weakening crude market.

• US gasoline crack up 0.4$/bbl at 12.8$/bbl
• US ULSD crack down 0.8$/bbl at 20.72$/bbl
• EIA product stock forecasts. Gasoline: Gasoline: +0.1m bbl (WSJ), -0.1m bbl (Reuters). Diesel: +0.4m bbl (WSJ), +0.3m bbl (Reuters).
• Citgo has implemented its hurricane preparedness plan at its 463k b/d Lake Charles refinery, Louisiana, Reuters said, citing the company.
• Shell will run its 233.7k b/d Norco, Louisiana refinery at full rates through Tropical Storm Francine, sources told Reuters.
• Russia’s crude processing fell to an average of 5.33mb/d during Sept. 1-4, sources told Bloomberg.
• Russia’s 300k b/d Yaroslavl refinery (YANOS), operated by Slavneft, has shut its gasoline-producing FCC for unplanned maintenance, Reuters said, citing company sources Sep.10.
• China’s state-owned refineries are projected to keep raising their CDU capacity in September, according to OilChem.
• Run rate cuts by China’s independent refiners due to weak margins could result in a 1% drop y/y in China’s crude throughput in 2024 while crude imports are expected to fall 1.2% y/y,
• China’s gasoline crack spread fell 8% over Jan.-Aug, while the diesel crack fell 35% and jet crack spread fell 24%.
• Japan’s refinery runs with rise in the coming months for increased jet fuel demand according to ENEOS Managing Executive Officer Yasuhiko Oshida at APPEC.