Oil Products Summary at European Close: Cracks Find Support

Gasoline and distillate cracks have erased earlier gains to trade higher on the day, showing small rebound to the general downtrend across H2 Feb. The latest weekly EIA oil data showed an increase in US gasoline implied demand but a drop in distillates implied demand on the week but both in line with seasonal trends.

• US gasoline crack up 0.9$/bbl at 29.24$/bbl
• US ULSD crack up 0.6$/bbl at 32.37$/bbl
• The oil products stockpiles in independent storage in the ARA oil-trading hub, according to Insights Global.
• Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,177, -28, Naphtha: 460, +95, Gasoil: 2,058, +132, Fuel Oil: 1,491, +19, Jet Fuel: 709, -18
• Russia is planning to lift the ban on winter-grade diesel exports from 22 March due to seasonally lower demand.
• Singapore low sulphur fuel oil arrivals from the West are expected to drop for a second straight month in March: Platts
• China’s refining capacity is expected to rise by 2.7% y/y in 2024 to 961mn mt/year or 19.3mn bpd according to ETRI.
• Russian crude loadings from Primorsk, Ust-Luga and Novorossiysk stood at 2.02mbpd in February, mostly Urals grade.
• Kuwait’s fuel oil exports rose for a second consecutive month in February, helped by Al Zour’s ramp up to full capacity.
• Observed crude and condensate exports from Algeria in February fell to their lowest monthly level since Sep. 2022.
• Asian naphtha premiums to NWE have fallen to their lowest level since Dec. 5.
• European jet fuel imports from the Middle East have slipped in Feb.