Oil Products Summary at European Close: Diesel Cracks Regain Ground

Diesel cracks are regaining ground this week to reverse much of the decline seen during the second half of October amid tight supply concerns and low inventories, hitting a daily high of $12.181/mt.

• US Gasoline cracks also rose on the day, although have softened from their intraday high of $12.181/mt. Gasoline cracks have regained some of the losses after yesterday’s EIA inventory build. Gasoline continues to see weakness amid low levels of demand.
• Gasoil NOV 23 up 1.7% at 908.5$/mt
• US ULSD crack up 0.8$/bbl at 44.7$/bbl
• RBOB DEC 23 up 2.4% at 2.24$/gal
• US gasoline crack up 0.4$/bbl at 11.69$/bbl
• Oil product stockpiles in Amsterdam-Rotterdam-Antwerp according to Insights Global - Inventory type, latest level, weekly change (all in thousand metric tons): Gasoline: 1,444, +35, Naphtha: 187, -25, Gasoil: 1,770, +20, Fuel Oil: 1,200, +145, Jet Fuel: 692, -5
• The crude 3 unit at Marathon’s 291k b/d Catlettsburg refinery in northeastern Kentucky will be offline for several weeks after a halt on Tuesday for maintenance according to Bloomberg sources.
• A nascent recovery in truck utilization is supporting resilient US freight diesel demand as rail traffic increases to a 2023 high according to JPMorgan. Global oil demand averaged 100k b/d below expectation in October at 102.1m b/d.
• German diesel/gasoil consumption in October is expected to have risen by 15% on the year to 1.15mbpd, as consumers have started stockpiling heating oil ahead of the winter according to a FGE note.