Oil Products Summary at European Close: Cracks Fall

Diesel cracks have reversed some of yesterday’s gain and are down around 0.6% since the start of the week. EIA data this week showed the four-week average implied distillates demand was still below the previous five-year range.

• US gasoline crack down -0.3$/bbl at 18.57$/bbl
• US ULSD crack down -0.8$/bbl at 38.02$/bbl
• Rosneft’s Tuapse refinery, damaged by a drone strike on Thursday, is expected to remain shut through at least February according to Bloomberg reports.
• European imports of diesel are expected to decline sharply in the first half of February to 450kbpd, Pamela Munger, Vortexa Analyst said.
• The premium of 30k mt diesel cargoes loading ARA vs Brent crude hit a seven-week high Jan. 25, according to Argus.
• More Middle East and Indian gasoil will remain east of Suez as the Red Sea tensions hit the East-West arbitrage, according to Argus.
• Asian refiners are hoping 2024 jet fuel demand will be boosted by a further recovery from China and Southeast Asia, according to Reuters.
• Gasoline supply for the Russian domestic market is stable despite the shutdown of a unit at Lukoil’s NORSI refinery and prices at filling stations are not rising Deputy PM Alexander Novak said.