OIL PRODUCTS: Oil Products Summary at European Close: Cracks Weaken

Stock builds and weak demand data is weighing on US diesel and gasoline crack spreads to reverse gains seen ahead of the data release

• US gasoline crack down 0.7$/bbl at 12.23$/bbl
• US ULSD crack down 0.6$/bbl at 20.04$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Sep 06: Gasoline stocks +2,310 vs Exp +75: Implied mogas demand -460, Distillate stocks +2,308 vs Exp +90, Implied dist demand -439, Ref Run rate -0.50 vs Exp -0.82
• Hurricane Francine could hit six US Gulf Coast refineries and 22 ports as it was nearing landfall on the Louisiana coast as of 9:52 am ET, according to Bloomberg using Bureau of Ocean Energy Management and EIA data.
• ExxonMobil plans to cut its Baton Rouge refinery's 522,500 bpd capacity to as low as 20% by Wednesday ahead of hurricane Francine according to Reuters sources.
• Valero has reported that the maintenance event has concluded and has issued an all clear at 205k b/d Houston, Texas refinery, according to Reuters.
• Nigeria’s 650k b/d Dangote refinery will operate at full capacity in 3-4 months, Engineers India chairman Vartika Shukla said, cited by Bloomberg.
• Port of Fujairah oil product inventories rose 11% in the week to Sept. 9 to 18.742 million barrels, the highest since July 15 according to Fujairah Oil Industry Zone Data.
• The rush to build mega airports in Dubai and Singapore to serve over 100m passengers per annum will boost jet fuel demand, but the outlook for SAF is more mixed, IATA’s chief economist said, cited by Platts.
• MNI COMMODITY WEEKLY: Oversupply Fears and Weak China Backdrop Pressing Oil: read here