Oil Products Summary at European Close: Cracks Tick Down

Diesel and gasoline markets have drifted lower today as robust gains in underlying crude put pressure on cracks. However, both products are likely to see upside support from tighter supplies amid Russian refinery outages due to drone attacks.

• US gasoline crack down 0.3$/bbl at 32$/bbl
• US ULSD crack down 1.2$/bbl at 32.54$/bbl
• The Russian Energy Ministry along with the National Guad are working on security measures to protect its refineries after a sustained set of attacks.
• Almost 900kbpd of Russian oil refining capacity is likely to be offline for several weeks or months following Ukrainian attacks, JP Morgan said in a note.
• Higher oil product prices in Europe are creating arbitrage opportunities previously limited by the high transport costs due to tanker diversions around Africa, according to Clarksons Securities.
• TotalEnergies were raising production on its CDU, coker and FCC at its 238,000 bpd Port Arthur, Texas refinery on Monday according to Reuters sources.
• Russian wholesale domestic gasoline and diesel prices rose on Tuesday as refining capacity has been reduced by drone attacks, according to Reuters.
• Ineos has proposed to shut its ethanol plant in Grangemouth, Scotland from Q1 2025 claiming the sector of the business has been running at a loss for “several years” it said Tuesday.
• EU REFINERY MAINTENANCE SCHEDULE - See PDF for the latest refinery maintenance update for Europe: https://roar-assets-auto.rbl.ms/files/60419/MNI%20EU%20Refinery%20Maintenace%20Schedule.pdf