Oil Products Summary at European Close: Cracks Face Pressure

Diesel and gasoline cracks have recouped some earlier losses amid stock draws and a small increase in implied demand on the week.

• US gasoline crack down -0.5$/bbl at 27.82$/bbl
• US ULSD crack down -0.3$/bbl at 34.01$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Feb 16: Gasoline stocks -293 vs Exp -2,877, Implied mogas demand +32, Distillate stocks -4,008 vs Exp -1,532, Implied dist demand +426
• Oil product stockpiles in independent storage in Europe's ARA oil-trading hub, according to Insights Global: Gasoline: 1,205, -42, Naphtha: 365, +2, Gasoil: 1,926, -24, Fuel Oil: 1,472, +30, Jet Fuel: 727, +63
• TotalEnergies’ 238kbpd Port Arthur refinery is operating at minimal production amid multiple upsets in units on Wednesday,.
• BP is planning to restart its 435kbpd Whiting, Indiana, refinery at full production in March.
• Bayernoil has restarted the 40kbpd hydrocracker at the Neustadt refinery on Wednesday.
• Consistently high clean product exports from PADD 3 has been good news for European countries who imported a five year high of diesel from PADD 3 in 2023 according to Vortexa
• China’s gasoline demand is slowing down after the Lunar New Year travel rush, resulting in independent refineries in the eastern Shandong province to reduce crude throughput, sources told S&P Commodity Insights.
• India’s state-run refiners are facing headwinds as Russian oil becomes more expensive and less accessible, according to Bloomberg.
• Planned fuel exports from China’s state-owned refiners are expected to increase about 10% month on month to 4m tons in March according to OilChem.