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

Diesel cracks have found support today amid a fall in underlying crude. However, gasoline cracks have fallen further amid continued signs of weak demand.

• US gasoline crack down 0.2$/bbl at 12.58$/bbl
• US ULSD crack up 0.4$/bbl at 22.27$/bbl
• U.S. retail gasoline demand saw a fall of 0.2% for the week ending August 31 (Sun-Sat) w/w according to GasBuddy data.
• Gasoline cracks could find some support, particularly in European blending and the EBOB complex, driven by the rebound in arbitrage from Europe to the US, according to Sparta Commodities.
• BP’s 400,000 bpd Rotterdam refinery had a power failure on Tuesday as part of a regional power cut in the area it said via a statement.
• Exxon Mobil said on Tuesday its 190,000-bpd Rotterdam refinery was not impacted by the brief power outage earlier on Tuesday.
• Gazpromneft suspended operations at its Moscow refinery after a fire caused by a Ukrainian drone strike on Sunday according to Reuters sources.
• Nigeria’s 650kbpd Dangote refinery production of Euro V gasoline, complying with Europe’s emissions standards, is not expected to be produced until late 2024, according to FGE.
• However, Dangote officials confirmed that the refinery was getting ready to export gasoline by the end of the week.
• Orlen’s Unipetrol expects to resume full operations at its Litvinov refinery at the beginning of next week according to CTK news agency reports.
• Refining margins are expected to improve in the near term with a tightening balance across the West of Suez, according to Kpler.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to rise in the week to Sep. 5 according to OilChem.
• Global airline passenger capacity will fall to 117.52m seats in the week from Sep. 02, OAG said.