Oil Products Summary at European Close: Cracks Reverse Losses

Diesel cracks reversed their earlier trend to be trading higher on the day. Meanwhile, gasoline cracks have continued rising throughout the day, supported by a US inventory draw and an increase in implied demand yesterday.

• US gasoline crack up 1.1$/bbl at 17.62$/bbl
• US ULSD crack up 0.7$/bbl at 35.58$/bbl
• At least four tankers shipping diesel and jet fuel from the Middle East and India to Europe are diverting around the Cape of Good Hope, according to Reuters.
• Increasing refinery runs are expected to raise diesel exports from major western ports in Russia delivered by pipeline by almost a fifth in January according to Bloomberg.
• Nigeria’s 650k b/d Dangote refinery has received its third crude cargo of 1m bbl, taking its total deliveries to 3m bbl, according to Africa Global Media.
• China has released its first batch of 2024 LSFO quotas totaling 8m mt, according to OilChem.
• Waterborne deliveries of residual fuel oil from the USGC are set for their lowest month since May 2020, as Panama delays hamper long haul arrivals, according to Argus.
• EIA Data: Total oil demand was higher on the month at 20.68mb/d in October compared to 20.09mb/d in September and 20.01mb/d in October 2022.
• Change in US oil demand y/y by product in kbpd: Gasoline +287 to 9,094, Distillate -96 to 4,067, Jet fuel +129 to 1,688.