Oil Products Summary at European Close: Cracks Fall Back

Products cracks are trending down today, despite indications of rising US gasoline demand. Strong inventories. Expectations of rising product demand continues to weigh against healthy global supplies.

• US gasoline crack down 0.7$/bbl at 23.48$/bbl
• US ULSD crack down 0.2$/bbl at 24.54$/bbl
• US retail gasoline demand saw a rise of 0.8% for the week ending June 22 (Sun-Sat) to 8.875m b/d, according to GasBuddy.
• Phillips 66 149kbpd Borger refinery, Texas, is performing maintenance on their electrostatic precipitators (ESPs) at the Unit 40 FCCU, according to a filing with the Texas Commission on Environmental Quality.
• China’s independent refineries’ combined gasoline and gasoil production will fall again in June for the third consecutive month, according to OilChem.
• Shandong’s 400k b/d Yulong refinery is expected to start commissioning by end-July and will come online by end of Q3, according to OilChem.
• China’s key oil majors are likely to export 0.6m-0.7m mt of diesel and 1.9m mt of jet fuel for July, industry sources told Reuters, largely stable on the month.
• Pemex’s flagship Olmeca (Dos Bocas) refinery in Mexico is unlikely to produce any commercially viable motor fuels before the end of the year, according to Reuters sources.
• Rising middle distillate prices have weighed on domestic sales in Germany this week, according to Argus.
• Global airline passenger capacity is set to rise to 120.25m seats in the seven days commencing from June 24, OAG said.