Oil Products Summary at European Close: Cracks Down

Gasoline and diesel cracks are trading lower on the day, as a continually weak seasonal demand outlook and rising US stocks continue to weigh on prices. Gasoline stocks rose by 5.4 mn bbls in the week to 223.6 mn bbls, far exceeding expectations for a 1 mn bbl build.

• US gasoline crack down -1.1$/bbl at 15.09$/bbl
• US ULSD crack down -0.4$/bbl at 38.59$/bbl
• ARA oil product stockpiles according to Insights Global: Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,185, -120, Naphtha: 197, -24, Gasoil: 1,770, +27, Fuel Oil: 1,256, -10, Jet Fuel: 712, -28
• China’s gasoil apparent consumption is forecast to rise 3.86% on the year in 2023 to 221.47m mt amid a gradual recovery following the pandemic, according to OilChem.
• Russia exports of diesel and gasoline recovered in November boosted by the end of refinery maintenance and the easing of fuel export restrictions.
• A segment of the Colonial Pipeline which is rarely full is booked for months amid a supply glut on the US Gulf Coast according to Bloomberg.
• High water levels will cause closures to parts of the Rhine for barges next week, according to Michiel Verbeek, a barge broker at Riverlake.
• India PPAC data: oil consumption was at 18.720 million tons in November, -2.0% y/y by products in % y/y: Diesel at 7.528mt, -3.0%, Gasoline at 3.129mt, +9.4%