Oil Products Summary at European Close: Cracks Dip

Diesel and gasoline cracks are drifting lower today, although the former remains on track for a modest net weekly gain of 0.4%, supported by recent US stock draws.

• US gasoline crack down 0.1$/bbl at 20.82$/bbl
• US ULSD crack down 0.3$/bbl at 21.45$/bbl
• Clean product margins appear to have found a floor after declines seen in the last few weeks despite muted demand even in expected hot spots, according to Vortexa.
• Diesel/gasoil arrivals to the top 100 diesel import ports continues above the eight-year range, counter to low gasoline imports, according to Vortexa.
• India’s oil product sales fell in the first half of August compared to July levels, data from state-run Indian Oil and Bharat Petroleum and Hindustan Petroleum showed cited by Bloomberg.
• Independent oil refiners in Shandong raised run rates to the highest in four weeks at 50% of capacity in the week to Aug. 16, according to OilChem.
• Brazilian diesel buyers may have to lean towards USGC-origin ULSD amid some difficulties in finding barrels Russia, traders told Platts.