Oil Products Summary at European Close: Diesel Cracks Continue Slide

Diesel cracks are continuing their recent trend of softening amid seasonally lower demand. Distillates implied demand is now 9.4% below the normal for the time of year. Middle East supply and tepid demand are also assuaging concern for European supplies.

• US gasoline crack up 0.3$/bbl at 30.92$/bbl
• US ULSD crack down 1.3$/bbl at 26.56$/bbl
• European ARA inventories (Insights Global data): Gasoil: +31 mt to 2,149k mt, Gasoline: -85k mt to 1,130k mt, Fuel Oil: +2k at 1,401k mt, Jet Fuel: +151k mt to 883k mt, Naphtha: -55k mt to 394k mt
• Russia has started diesel exports to Sudan, as Moscow is seeking to find new markets for refined products exports, LSEG data showed.
• Current output of class-5 motor gasoline is sufficient for the Russian market: Russian Energy Ministry.
• Motiva’s 630kbpd Port Arthur, Texas, refinery had a power failure one Wednesday that interrupted several units, according to a TCEQ filing.
• Esso is planning to sell its refining and logistics activities in the south of France to Rhône Energies – a consortium of Entara LLC and Trafigura, while also planning to shut down the steam cracker at the Gravenchon Port Jerome refinery, it said in a statement.
• BP is planning to start maintenance at the 90kbpd Lingen refinery in Germany from the end of May, sources told Bloomberg.
• The C+F Japan physical naphtha crack against brent is expected to remain under pressure in Q2: Platts.
• Singapore’s middle distillate stocks rose above 11mn bbls – the first time in 2.5 years as net exports slowed according to Enterprise Singapore data.