Oil Products Summary at European Close: Diesel Cracks Jump

A larger-than-expected draw in distillate stocks has supported diesel cracks, pushing them to new intraday highs. Gasoline cracks have softened further, however, following a build in US inventories.

• US gasoline crack down -0.6$/bbl at 17.98$/bbl
• US ULSD crack up 2.2$/bbl at 40.99$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Jan 26: Gasoline stocks +1,157 vs Exp +2,340, Implied mogas demand +264, Distillate stocks -2,541 vs Exp -347
• Crude inventories in the ARA region fell again this week by 557kbbl to 44.91mbbl in the week to January 26 according to the latest Genscape data.
• Vortexa has flagged a significant decrease in clean petroleum product (CPP) tankers transiting the Suez because of Red Sea transit risks.
• Although vessel tracking firms have highlighted Russian oil product cargoes are still transiting the Red Sea despite the risks, Russia cargoes are also diverting around the Cape of Good Hope according to LSEG data.
• Russian oil product exports rebounded last week to a six-week high and sharply reversed the slump in the prior week according to Bloomberg analysis of Vortexa data.
• A drone hit Russia’s Nevsky Mazut oil refinery near St Petersburg on Wednesday, causing an explosion at the refinery, the Moscow Times reported, citing local media.
• Phillips 66 has shut a section of the Oklahoma Panhandle natural gas pipeline following a fire and rupture on Tuesday morning, the company said.
• The ExxonMobil 191kbpd Rotterdam refinery is to shut for a turnaround from mid-February to late April according to Reuters.
• India is projected to increase oil refinery capacity by 22% or 56m tons (1.12mb/d) by 2028.