Oil Products Summary at European Close: Cracks Lose Ground

Diesel and gasoline cracks have lost ground today. Diesel remains under pressure amid weaker global demand and robust product flows.

• US gasoline crack down 0.4$/bbl at 24.59$/bbl
• US ULSD crack down 0.5$/bbl at 23.13$/bbl
• Motiva shut the FCC at its Port Arthur refinery on Monday after attempting to restart it. The unit developed another leak according to Reuters sources.
• Marathon Petroleum processed 16% of the US’ total demand at its 13 plants in June, even as fuel demand was hampered by lower manufacturing activity and renewable fuel supply, Reuters said.
• Fuel production at Pemex’s Dos Bocas refinery will meet a fifth of the country’s needs within the next two weeks according to President Andres Manuel Lopez Obrador speaking with local media.
• Diamondback Energy raised its full-year oil and gas production estimates by about 4,000 barrels per day to between 462,000 boepd and 470,000 boepd as operational efficiencies helped boost output, according to Reuters.
• Turkeys Tupras is working to modernize the FCC at its Izmir refinery according to the company this week.
• Slowing demand growth and rising supply is adding downside risk to US Gulf Coast and NW European jet fuel cracks vs the curve into 2025, according to Bank of America on Aug 2 cited by Bloomberg.
• Continued growth in air travel during peak summer is set to lift China’s jet fuel consumption by around 13.14% in July and August combined compared to 2023, OilChem said.
• Global Passenger jet fuel demand growth is tapering off as the peak summer travel season ends, BNEF said.
• Direct flights between China and the US are outpacing demand despite efforts to try and restore the routes to pre-pandemic levels.