Oil Products Summary at European Close: Cracks Rise

Diesel cracks have dipped from their intraday high today following a larger build in US stocks, while gasoline cracks have edged back up to the highs of the week, despite a larger than expected build.

• US gasoline crack up 0.4$/bbl at 15.31$/bbl
• US ULSD crack up 0.3$/bbl at 37.22$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Dec 08: Gasoline stocks +409 vs Exp -1,047, Implied mogas demand +393, Distillate stocks +1,494 vs Exp 0, Implied dist demand +14
• Higher US gasoline inventories are expected to contribute to lower US gasoline crack spreads in 2024 falling by 15 cents/gal compared with 2023 according to the EIA monthly oil report.
• Diesel-type exports from the port of Primorsk are on track to rise well above the seasonal average this month at 517,000 tons, or 388kbpd, during 1-10 December, according to data compiled by Bloomberg.
• Russian oil products exports on a four-week basis rebounded last week to average 2.2mbpd as of 10 December, led by higher exports of diesel and naphtha after exports restrictions were eased, refinery maintenance ended and Black Sea exports recovered after storms in the region, Vortexa data, cited by Bloomberg showed.
• Northwest European diesel-type fuels stockpiles are expected to rise in the coming weeks, driven by weak demand and relatively strong supply, according to Wood Mackenzie.
• Implied global jet fuel demand in the week to Dec. 18 is set to rise by 0.6% on the week to 6m b/d, according to BNEF.
• Oil products stocks at the port of Fujairah fell by 10% on the week to 16.77mn barrels in the week to 11 December, the lowest since 25 September, according to data from the Fujairah Oil Industry Zone.