OIL PRODUCTS: Oil Products End of Day Summary: Gasoline Cracks Gain Ground

US gasoline cracks are stronger on the day and set for a net weekly gain of 8.9%. However, product crack spreads remain weak overall, with the US diesel crack falling to a new recent low yesterday of $19.65/bbl. 

• US gasoline crack up 0.5$/bbl at 12.66$/bbl
• US ULSD crack down 1$/bbl at 19.01$/bbl
• Money managers have increased their bearish gasoil bets by 26,262 net-short positions to 64,461, according to Bloomberg citing ICE data. The net-short position is the most bearish on record for the data going back to Jan. 2011.
• Six oil refineries in Louisiana began recovering after Hurricane Francine passed, Reuters sources said, but multiple facilities were operating at reduced rates, according to EIA late yesterday
• LatAm seaborne diesel import demand has grown fairly significantly so far in 2024 to diverge from gasoline/blending component imports, according to Vortexa.
• Gazprom Neft’s Moscow Oil Refinery resumed operations on September 10 at crude distillation unit-6 (CDU-6), according to Reuters sources.
• China’s independent refineries in Shandong ae bracing for a potential feedstock shortage in Q4, as they near the end of their crude import quota utilisation and face higher cost of alternative feedstocks, Platts said.
• Asia’s benchmarks for VLSFO have fallen on the week as the market retreats following a recent rally, Reuters said.