Oil Products Summary at European Close: Cracks Decline on Week

US gasoline and diesel cracks are set for a decline on the week, with diesel cracks down around 10.8%, and gasoline down 3.2%. Diesel cracks are hovering around near 11-month lows amid more tepid demand.

• US gasoline crack down 0.1$/bbl at 30.98$/bbl
• US ULSD crack up 0.4$/bbl at 24.26$/bbl
• The prompt Gasoil spread has this week fallen into contango for the first time since May 2023.
• The Biden Administration is using emergency powers to allow widespread sales of E15 gasoline this summer – the same thing it has done the last two years to try and keep a lid on rising prices.
• China’s state and independent refiners cut run rates in the week to April 18 to 77.82%, the lowest level since February 29, according to OilChem.
• Storage capacity utilisation rates at Shandong’s independent refineries have been largely stable in the week to April 19 at 43.7%, according to OilChem.
• Asian refiners are assessing the impact of higher freight and maritime insurance fees amid continued tension in the Middle East, according to Platts.
• The US is aiming to keep gasoline prices in current ranges into this summer driving season according to President Biden’s top economic aide.
• Phillips 66 reported an FCC emissions upset at its 149,000 bpd Borger Texas refinery on April 18 due to a process malfunction.
• US REFINERY MAINTENANCE SCHEDULE: See PDF for the latest refinery maintenance update for the US: https://roar-assets-auto.rbl.ms/files/60944/MNI%20US%20Refinery%20Maintenance%20Schedule%20.pdf