Oil Products Summary at European Close: Cracks Strengthen

Cracks have risen sharply during European afternoon trading, the inverse of the fall seen in crude. Gasoline cracks are headed for a sharp 19% rise since the start up the week, while diesel cracks are up by a more modest 5.5%.

• RBOB JAN 24 up 0.2% at 2.12$/gal
• US gasoline crack up 0.4$/bbl at 17.91$/bbl
• Gasoil JAN 24 up 1% at 759.75$/mt
• US ULSD crack up 1.8$/bbl at 38.97$/bbl
• The US exports to diesel are at a record rate as delays at the Panama Canal shut out markets in the Pacific, according to BNEF.
• China refinery throughput fell in November m/m as independent refiners cut rates against tight export quotas and weak margins.
• China’s refined oil export profits have moved into negative territory, according to OilChem, driven by declining Asian gasoline prices and rising US inventories.
• Valero’s St Charles refinery in Norco, Louisiana, plans a multi-unit turnaround in early February until early March according to Bloomberg sources.