Oil Products Summary:

Gasoline cracks have steadied this week after seeing a slow recovery since lows in mid-October.

• Gasoil DEC 23 down -0.7% at 820$/mt
• US gasoline crack down -0.9$/bbl at 14.28$/bbl
• US ULSD crack down -0.5$/bbl at 40.26$/bbl
• Data this week showed US gasoline stocks just 1.2% below the five-year average while European ARA Gasoil stocks are still 15% above normal despite a draw this week. Singapore Light Distillates inventories this week dipped slightly to -3.4% below average.
• Expected record levels of Thanksgiving travel is supportive for short term fuel demand in the US this week while gasoline prices are at multi-year lows.
• China teapots in Shandong raised run rates to 57.56% of capacity in the week to November 23 – the first weekly increase in 8 weeks according to OilChem.
• China’s refined oil exports are planned at 2.73m tonnes in November, a drop of 19.94% MoM according to an OilChem survey. Exports are expected to decline further to 2.5-2.7m tonnes in December based on the remaining export quotas.
• Diesel crack spreads have seen some support this month after the declines seen late summer, while Europe gears up for its first winter without Russian diesel, leaving it sensitive to supply shocks.
• US diesel stocks this week again followed the seasonal draw to the lowest since May 2022 and still 13.5% below the five-year average. Middle Eastern diesel exports to Europe last months fell to the lowest in eleven months amid refinery outages.
• Singapore Middle Distillates Stocks were however this week holding steady just below the five-year average after building in early November.