Oil Products End of Day Summary: Cracks Weaken

Diesel and gasoline cracks spreads are heading for US close trading lower amid a weaker demand outlook and expectations for robust US inventories. US gasoline demand fell again last week to the second lowest weekly level since early 2023 according to GasBuddy data.

• US gasoline crack down -0.2$/bbl at 14.51$/bbl
• US ULSD crack down -1$/bbl at 37.06$/bbl
• US motor gasoline retail prices are forecast to average $3.53/gal in 2023, according to the EIA Short Term Energy Outlook, down 0.8% on the previous forecast. Prices in 2024 were revised down 6.8% to $3.36/gal.
• In a survey by the WSJ, US gasoline inventories are expected to build by 1.9m bbl to 225.5m bbl, while for distillate stocks, respondents expect a build of 0.4m bbl with a range of responses from a 2.4m bbl draw to a 2.4m bbl build.
• US retail gasoline and diesel prices fell in the week to Dec. 8, according to the EIA.
• Russian refiners have been ordered to increase supplies of winter diesel fuel available for exchange trading according to the Russian government after the latest fuels meeting with authorities.
• TotalEnergies halted equipment at the 219kbpd Donges refinery, which has prompted the use of emergency flares, the operator said.
• Iran is close to completing a refining cooperation contract with the Homs refinery in Syria similar to that of Venezuela’s El Palito Refinery, according to Ali Shahverdi.
• Chinese independent refineries’ crude imports increment in Jan 2024 are likely to be limited as demand has softened and delivered prices rise, sources told Platts.