May 24, 2024 15:33 GMT
Oil Products Summary at European Close: Cracks Fall on Week
OIL PRODUCTS
Gasoline and diesel cracks are lower both on the day and on the week as demand remains at seasonally low levels. However, there are some signs of improving consumption, which if sustained could be supportive.
- US gasoline crack down 0.1$/bbl at 26.35$/bbl
- US ULSD crack down 0.4$/bbl at 24.81$/bbl
- This upcoming Memorial Day Weekend marks the start of the US summer driving season against a backdrop of growing but seasonally sluggish demand. AAA predicts record travel but factors like higher efficiency, electric cars and shorter journeys are denting consumption.
- US product supplied, a proxy for gasoline demand jumped over 400kbd on a weekly basis in the latest data but will need to sustain through the holiday to begin a meaningful trend.
- The Colonial pipeline, the largest refined fuel pipeline in the U.S., conducted maintenance on Thursday – temporarily halting supplies it said.
- The onset of naphtha exports from Nigeria’s new 650k b/d Dangote refinery will further pressure an already weak Asian naphtha market, according to Platts oil podcast.
- Russia’s offline primary capacity was revised higher to 12% for May at 3.392 million metric tons according to Reuters calculations based on industry sources.
- Eneos Group, Japan’s biggest refiner, shut its 172,000 bpd CDU 2 at its Kawasaki refinery and the 136,000 CDU at its Oita refinery May 13 for scheduled maintenance.
- Japan's Maruzen Petrochemical shut a 525,000 metric ton per year cracker in Chiba on May 15 with a projected turnaround of about two months the company said Friday.
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