Oil Products Summary at European Close: Cracks Fall

Diesel cracks spreads and time spreads have continued to weaken today, continuing the general down trend since Feb. 9. Diesel cracks have no erased almost all of February’s earlier gains.

• US gasoline crack down -0.6$/bbl at 17.89$/bbl
• US ULSD crack down -0.7$/bbl at 38.02$/bbl
• European gasoline remains “overall bearish” with “persistent length” and “inevitable export constraints” eventually limiting upside to regional cracks according to Kpler last week.
• Exxon Mobil shut the 83kbpd CDU at the 270kbpd Port Jerome refinery in France on 16 February, according to a WoodMackenzie alert.
• Ineos halted the 110kbpd CDU at the 210kbpd Grangemouth refinery on 16 February according to WoodMackenzie.
• Marathon Petroleum’s 66kb/d Salt Lake City refinery in Utah has begun shutting units at its South End section for a multiunit turnaround according to Bloomberg sources.
• Russian oil processing rates stood at 5.16mbpd in the second week of February, down by 94kbpd on the week, sources told Bloomberg.
• Russia’s USt-Luga condensate processing facility partially restarted between February 8-14 according to Bloomberg sources.
• West African fuel supply is set for a significant boost in the coming years because of Nigeria’s Dangote refinery and capacity growth from NNPC according to FGE.
• US average gasoline prices have risen for the fourth straight week, up 8.7 cents/gal to $3.26/gal, according to GasBuddy.
• Chinese Travel demand during the Lunar New Year holiday exceeded pre-pandemic levels, adding to signs that consumption in China is improving, according to Bloomberg.