Oil Products Summary at European Close: Crack Slide

Diesel and gasoline cracks have reversed some of their strong gains from Friday evening, after the market had time to assess the impact of the strike on products tanker in the Red Sea.

• US gasoline crack down -0.9$/bbl at 18.76$/bbl
• US ULSD crack down -0.8$/bbl at 39.9$/bbl
• US weekly gasoline demand (Sun-Sat) rose by 2.9% last week to above 8mbpd according to GasBuddy.
• Repair works at Lukoil’s Norsi refinery are expected to last at least one month but the assessment is ongoing, Russian Deputy Prime Minister Alexander Novak said, cited by Bloomberg.
• The oil refinery in Russia’s city of Yaroslavi is operating normally following an attempted drone strike Jan. 19, according to regional governor Mikhail Yevrayev, cited by Nasdaq.
• A 56.3kbpd hydrocracker unit at Shell’s Pernis refinery in the Netherlands was shut on Saturday in an unplanned outage according to Genscape.
• US oil refiners are looking to maximize diesel production at the expense of gasoline according to Bloomberg amid a demand boost for diesel over the winter.
• Nigeria’s 650kbpd Dangote refinery has started production, Argus reported in mid-January, while gasoline production is expected to start end-March, Dangote Chief Executive, Aliko Dangote said, cited by the Guardian.
• Chinese oil product exports from state-owned refiners are set to fall 13.7% from last month to 3.48m tons in February according to OilChem sources.
• Oil product tanker utilisation rates could approach 100% should all vessels avoid the Red Sea and divert via the Cape of Good Hope, according to Clarksons, cited by Bloomberg.
• Jet fuel: Global passenger capacity in the week commencing Jan.29 is due to rise to 103.96m seats, up 1.27% on the week.