Oil Products Summary at European Close: Cracks Weakening

Diesel and gasoline cracks are weaker again today, furthering their losses from yesterday. Uncertainty surrounds US demand ahead of a potential boost from the July 4 holiday period.

• US gasoline crack down 0.5$/bbl at 23.94$/bbl
• US ULSD crack down 0.3$/bbl at 25.54$/bbl
• TotalEnergies 238kbd Port Arthur refinery in Texas shut the smaller of two crude units on Thursday according to a regulatory filing.
• Shandong’s 400k b/d Yulong refinery could be nearing a start with the refiner buying 740kbbl of ESPO crude for late July arrival, according to Bloomberg.
• China’s gasoil market is expected to gain momentum some in July from rising speculative demand amid speculations of improved consumption levels in August and September, OilChem said.
• The price difference between China’s bonded bunker LFSO and HSFO fell to $50/mt as of June 25, hitting a four-year low according to OilChem.
• Russia is close to ruling on an extended permit for gasoline exports into July supported by the restart of a Norsi refinery unit, according to Reuters sources.
• Russia’s refinery runs fell just below 5.2mb/d in June 1-26 and the lowest level since May 2022, according to a Bloomberg source.
• The macroeconomic weakness that is dragging on demand for crude is filtering into jet fuel, preventing the market from hitting its full demand potential, Platts said in its oil market podcast.
• While the regions aviation activity has grown, this has not directly translated into gains for Asia’s jet fuel market amid supply issues, Platts said.