Oil Products Summary at European Close: Cracks Mixed

Diesel cracks have edged lower with a fresh dip in implied demand, but gasoline cracks are holding onto small earlier gains following the release of updated weekly EIA data.

• US ULSD crack down 0.1$/bbl at 22.84$/bbl
• US gasoline crack up 0.1$/bbl at 25.12$/bbl
• US 321 crack up 0.1$/bbl at 24.36$/bbl
• ULSD JUL 24 down 0.1% at 2.28$/gal
• EIA Weekly US Petroleum Summary - w/w change week ending May 31: Gasoline stocks +2,102 vs Exp +1,087, Implied mogas demand -202, Distillate stocks +3,197 vs Exp +1,578, Implied dist demand -428.
• The latest EIA weekly petroleum status report for the week to May 31 showed fresh weakness in the gasoline and distillates implied demand amid signs of a stall in the recent recovery.
• China’s diesel exports edged up in May but increasing domestic farming demand and soft export margins weigh on June exports according to Vortexa.
• China’s refined product production is projected to fall around 6% on the month in June amid poor refined oil demand and narrowing profit margins, OilChem said.
• Taiwan's Formosa Petrochemical intends to cut run rates at its crude distillation units by 40,000 bpd to 440,000 bpd in June, the company said on Wednesday.
• Indonesia's Pertamina Patra Niaga is seeking more jet fuel for prompt June delivery.
• Stockpiles of oil products from the UAE’s Port of Fujairah have hit a six-week high as of June 3, driven by slower demand for fuel oil, according to Fujairah Oil Industry Zone data cited by Platts.
• MNI COMMODITY WEEKLY: (Oil & Oil Products): Demand Backdrop Leaves Few Options for OPEC+ to Bring Barrels Back – Full piece here: https://enews.marketnews.com/ct/x/pjJscQiPlrgI6a8xdRtxHg~k1zZ8KXr-kA8x6nPXZfwptIPjO1OcQ