Oil Products Summary at European Close: Cracks Decline

US gasoline and diesel cracks have extended yesterday’s pullback under pressure from EIA data showing four-week average implied demand declining on the week. Gasoline demand however remains above the previous five-year average while distillates demand is below the previous five-year range.

• US gasoline crack down 0.4$/bbl at 31.54$/bbl
• US ULSD crack down 1.2$/bbl at 24.25$/bbl
• Russian seaborne oil product exports averaged 1.81mbpd in the week ending 14 April, down by 560kbpd from the same period a month earlier, S&P tanker tracking data showed.
• Russian diesel exports averaged 0.74mbpd in the ten days until 13 April, down by around 23% from the 2019-2023 average, Kpler data showed.
• China’s oil products surplus is expected to widen to 52mn tons by 2025, from 47mn tons this year, CNPC’s researcher Li Ran said, cited by Bloomberg.
• Chinese diesel exports were at a one-year high last month as a weak domestic market pushed higher volumes overseas.
• Chinese gasoline output in March increased by 6.5% year on year to 14.29mn tons, and jet fuel exports in March were 77.4% higher year on year at 1.98m metric tons
• As Northeast Asia’s refinery maintenance ramps up this quarter, the regions implied refinery runs are expected to fall according to Vortexa.
• The Delek Big Spring refinery Texas reports reduced rates amid maintenance on a processing unit according to a Texas Commission on Environmental Quality filing.
• Bidders for Citgo's US refining assets have until 11 June to submit offers with a tentative sale hearing set for July 15. 805,000 bpd of refining capacity and associated assets are open for offer.