Oil Products Summary at European Close: Cracks Jump

Product Cracks saw a surge in the European afternoon session amid losses in underlying crude and despite continued weakness in gasoline demand. Diesel reversed earlier losses to be trading positive on the day, while gasoline has softened from its daily high of $14.55/b.

• US gasoline crack up 0.4/bbl at 14.3$/bbl
• US ULSD crack up 0.5$/bbl at 41.8$/bbl
• The per capital US fuel consumption is expected to the lowest in two decades according to EIA. Total demand is seen at 8.83mbpd due to higher prices and cost of living pressures although a smaller drop than previously expected.
• The Russian government is discussing with oil companies to lift the ban on some gasoline exports, Russia’s Energy Minister confirmed, cited by Interfax.
• Russia’s oil product exports are showing signs of recovery driven by fuel oil and jet fuel following export restrictions and seasonal maintenance.
• Russian diesel is no longer competitive in Brazil, Petrobras CEO Jean Paul Prates said.
• Profit margins at China’s independent refiners turned negative in late October for the first time since early January driven by higher crude prices and weakening demand for diesel and gasoline according to JLC.
• Fujairah oil product stockpiles rose 4.8% in the week ended Nov. 6 to 17.873mn bbls according to Fujairah Oil Industry Zone data.
• US gasoline demand Nov. 7 was 5.7% below the same day in the previous week, according to GasBuddy’s Patrick De Haan, putting it around 4% below last week’s average.
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