Oil Products Summary at European Close: Cracks Extend Losses

Diesel and gasoline cracks have furthered losses during the day. The latest weekly EIA oil data showed an increase in US gasoline implied demand, but it remains 2.3% below the five-year average. Meanwhile, distillates saw a drop in implied demand on the week, also below the five-year average.

• US gasoline crack down -1.2$/bbl at 28.9$/bbl
• US ULSD crack down -2.2$/bbl at 32.11$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Feb 23: Gasoline stocks -2,832 vs Exp -2,347, Implied mogas demand +267, Distillate stocks -510 vs Exp -2,386, Implied dist demand -404, Tot product stocks -7,357, Ref runs +100.
• An OPIS US gasoline demand survey indicates levels of about 8.4mn bpd last week. OPIS referred to the number as growing vs the week prior but lackluster vs historical levels.
• Oman’s recently inaugurated Duqm refinery may start processing more crude grades from the end of the year and studies are currently underway according to its CEO David Bird speaking with Reuters.
• The 149kbpd Borger refinery in Texas, owned by Phillips 66, is still operating despite ongoing wildfires in the region, the firm said, cited by Bloomberg.
• Valero will carry out maintenance at its Pembroke refinery in the UK in September, sources told Bloomberg.
• The Americas will increasingly buy gasoline from Asia, as exports from the US Gulf Coast are expected to be limited, Sparta Commodities said in a note.
• Oil product stockpiles at the UAE's Port of Fujairah increased 13% on the week to 18.734mn barrels as of 26 February.