Oil Products Summary at European Close: Diesel Cracks Fall

Diesel cracks are down on the day. Although have been finding support this week following Red Sea diversions and refinery outages.

• US gasoline crack down -0.8$/bbl at 16.86$/bbl
• US ULSD crack down -1.3$/bbl at 40.23$/bbl
• European imports of diesel are expected to decline well below 2023 levels in the first half of February with supply from India the lowest in two years.
• ARA product Stockpiles according to Insights Global. Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 948, +108, Naphtha: 304, -4, Gasoil: 1,958, +263, Fuel Oil: 1,397, -84 , Jet Fuel: 706, -33
• Phillips 66 plans to stop processing crude in February at its Rodeo, California refinery as it moves to renewable fuels.
• US gasoline crack up 0.1$/bbl at 17.85$/bbl
• US ULSD crack down 0$/bbl at 41.45$/bbl
• Diesel sales by India’s state-run refiners fell by 2.6% on the month to 6.568m tons in January according to company data via Bloomberg.
• Diversions away from the Red Sea due to Houthi attacks have triggered renewed price spikes in refining and freight markets, Goldman Sachs analysts said in a note, cited by Bloomberg.
• Goldman Sachs expect refinery capacity growth to remain in line with refined product demand growth during 2024-2025. Dec-Dec capacity growth is seen at 0.9m b/d in 2024 and 1.45m b/d in 2025.
• Russian oil product exports from the Black Sea port of Tuapse are set to fall by 59.1% month on month in February to 0.416mn tons, traders told Reuters.
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