Oil Products Summary at European Close: Cracks Soften

Gasoline front month crack spreads have recouped some losses after earlier retreating to Jan 19 levels as the market assess soft demand against refinery outages.

• US gasoline crack down -0.2$/bbl at 18.16$/bbl
• US ULSD crack down -1.8$/bbl at 38.93$/bbl
• India’s diesel exports to Europe are down by around 80% on the month to 33.4kbpd-58kbpd this month, Kpler, LSEG and Vortexa ship-tracking data showed, tracking the lowest in two years, as Red Sea disruptions shored up freight costs.
• Russia’s four-week average seaborne crude exports fell by about 250kb/d last week to about 3.09mb/d according to Bloomberg and about 200kbpd below Russia’s Q1 pledged target.
• Russia’s oil-processing rates remained relatively resilient in the latest week, according to Bloomberg.
• Russia’s largest oil producer Rosneft will redirect 100k mt of fuel oil to Tuapse from its Achinsk refinery in Siberia, according to XM, citing Reuters sources.
• Neste is ramping down its Porvoo refinery, Finland, ahead of strikes.
• Chinese independent refiners are reluctant to buy Iranian crude in February as the issues over pricing terms run into a second month according to Reuters sources.
• China’s planned exports of refined oil products, namely gasoline, gasoil, and jet fuel, are set to fall 13.65% on the month in Feb to 3.48m mt, according to OilChem.
• China’s gasoline prices are expected to fall in February amid softening market sentiment and falling consumption, according to OilChem.