Oil Products Summary at European Close: Cracks Lose Ground

Diesel and gasoline crack spreads have been drifting lower this today amid healthy global supply and tepid demand. This furthers a trend ongoing throughout August.

• US gasoline crack down 0.2$/bbl at 20.25$/bbl
• US ULSD crack down 0.8$/bbl at 20.55$/bbl
• Europe’s diesel imports for August are set to be the highest since Jan. 2023: Bloomberg
• U.S. gasoline demand saw a rise of 0.3% for the week ending August 17 w/w but was 1.1% below the 4-week average: GasBuddy.
• Russian refiners have boosted processed volumes this month as Gazprom ramps up output: Kommersant.
• ExxonMobil reported a process unit upset at its Joliet, Illinois refinery on Aug.17.
• China's gasoline exports fell 35.7% y/y in July and diesel exports fell 41% y/y, the lowest since June 2023: customs data.
• China's refined product exports fell 6% y/y to 4.98m mt for July led by gasoline and diesel, GACC data showed.
• China’s July LSFO production fell 8.1% on the month to 1.21m mt: OilChem.
• CDU capacity utilisation rates at China’s state-owned refineries are expected to remain stable in the week to Aug. 22: OilChem.
• Weekly CDU capacity utilisation rates at China’s Teapots are seen rising for the next three weeks: OilChem.
• Shell Singapore shut one CDU and other facilities at its 237,000-bpd refinery on Bukom island for scheduled maintenance.
• Global airline passenger capacity will fall to 121.85m seats in the week from Aug. 19, OAG said.
• Chinese air passenger travel is expected to hit a record in 2024, exceeding pre-pandemic levels.
• The EU is exceeding US competitors in SAF uptake due to EU mandates of 2% by 2030: Bloomberg.