OIL: Oil Products Summary At European Close: Cracks Fall

Cracks are trading down today, with diesel reversing gains earlier in the session, amidst signs of increasing global trade friction.  

• US ULSD crack down 0.5$/bbl at 30.75$/bbl
• US gasoline crack down 1$/bbl at 16.45$/bbl
• US 321 crack down 0.8$/bbl at 21.23$/bbl
• Asian naphtha markets remain quiet, although interest is beginning to surface as procurement activities for H1 April begins in the next few days, Reuters said.
• German consumers have increased their heating oil purchases as prices dropped by nearly €2/100l nationwide, Argus said.
• Both Bayernoil’s 215k b/d Vohburg-Neustadt and Miro’s 310k b/d Karlsruhe refineries continue to produce at reduced levels due to technical issues, Argus said.
• Lyondell Basell has completed the final shutdown of its 236,776 bpd Houston refinery according to a handful of reports in recent days.
• ExxonMobil reported an emissions event from 8-9 Feb at its 564,440 bpd Baytown refinery.
• The head of Nigeria’s Dangote refinery says it could begin operating at full capacity in 30 days Reuters reports.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to rise in the week to Feb. 13 according to OilChem, with refineries lifting production scheduling for February.
• The Rhône Energies 140kb/d Fos oil refinery had an operational incident on Feb. 8 following severe weather, according to a community alert.
• The HSFO market has been surging recently, particularly in Singapore where prices have surged relative to Brent/Dubai, moving into rare positive territory on tight heavy/sour crude oil supplies.
• Global airline passenger capacity is set to rise by 1.03m seats in the seven days commencing from Feb. 10, OAG said.