Oil Products Summary at European Close: Diesel Cracks Ease

Diesel crack spreads have continued easing back today, retreating to levels last seen Feb. 8. Despite falling this week, diesel cracks are holding most of this month’s gains and are still at levels last seen in October. The main support comes from Red Sea diversions, refinery maintenance, and drone attacks on Russian energy infrastructure.

• US gasoline crack up 0.1$/bbl at 22.56$/bbl
• RBOB MAR 24 up 1% at 2.39$/gal
• Gasoil MAR 24 up 0.4% at 875$/mt
• US ULSD crack down -1.7$/bbl at 44.41$/bbl
• The current oil refining “turbo margins” will encourage oil refiners to increase runs if they are able to according to FGE.
• An explosion at Pemex’ 215kbpd Miguel Hidalgo refinery, or Tula, on Monday afternoon local time injured eight workers according to Radio Formula.
• Wood Mackenzie expect diesel/gasoil stocks in northwest Europe to fall over the next two months before a recovery into Q2.
• Clean product transits via Bab al-Mandab fell to 210k b/d, compared to the usual 2m b/d according to Oil Brokerage.
• EU Refinery Maintenance Schedule - : See PDF for the latest refinery maintenance update for Europe: https://roar-assets-auto.rbl.ms/files/59952/MNI%20EU%20Refinery%20Maintenace%20Schedule%20.pdf