May 31, 2024 15:33 GMT
Oil Products Summary at European Close: Cracks Soften on Week
OIL PRODUCTS
Gasoline and diesel cracks are rising today but are set for a loss of around 8.5% and 6.5% respectively. Rising run-rates globally are boosting supplies while demand remains tepid despite peak driving season.
- US gasoline crack up 1.3$/bbl at 24.12$/bbl
- US ULSD crack up 0.4$/bbl at 22.87$/bbl
- GasBuddy expects that in the next ~72 hours, the average price of diesel ($3.84/gal) will drop to its lowest level since Russia's invasion of Ukraine in 2022 ($3.80/gal).
- The Ukrainian navy struck an oil terminal at the Russian port of Kavkaz in the Krasnodar region on Friday with missiles according to Telegram.
- Lukoil’s NORSI refinery in Russia could resume operations of its CDU-6 primary unit and catalytic cracker in June according to Reuters sources.
- The Phillips 66 Sweeny refinery, Texas, saw unit interruptions Thursday from a power issue it said via a regulatory filing.
- Russian oil product exports from the Black Sea port of Tuapse in May were down 28.6% from initial plans at 1.093 million metric tons after an unplanned refinery stoppage according to Reuters sources and LSEG data.
- A strike by workers set to lose their jobs at an ExxonMobil’s Port Jerome Gravechon petrochemical complex will remain suspended through June 4 according to union officials.
- Feasible levels of gasoline out of Nigeria’s ramping up Dangote refinery are estimated at 60kbd in June according to FGE
- Combined California diesel stocks fell to the lowest level on record for the week ending May 24, according to Argus.
- Asian gasoline cracks are likely to stay weak as the region’s refiners much adjust to oversupply, according to Sparta Commodities’ analyst Jorge Molinero.
- Asia’s oil refiners are facing a squeeze on diesel margins amid rising imports from the Middle East, according to Bloomberg.
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