Oil Products Summary at European Close: Diesel Cracks Soften

Diesel cracks have continued softening today, despite uncertainty around Russia’s refinery output. Meanwhile, China is expected to issue its second batch of refined oil export quotas totalling 18m mt.

• US gasoline crack up 0.9$/bbl at 29.9$/bbl
• US ULSD crack down 0.6$/bbl at 27.39$/bbl
• It is unlikely that the 340k b/d Olmeca refinery will commence operations in April as promised by Mexico’s president AMLO, as the refinery has not yet met several deadlines established by both Pemex and the government, Argus said.
• The impact of oil products out of the Pemex Olmeco refinery (also known as Dos Bocas) will be felt from the second half of 2024 onwards according to FGE.
• Exxon Mobil’s 252kbpd Joliet refinery shut down the 275kbpd CDU and 50kbpd cat reformer on 6 April, according to WoodMac, as the refinery is undergoing seasonal maintenance as of early April.
• Marathon’s 291kb/d Catlettsburg refinery in northeastern Kentucky cut run rates by as much as 38% due to a shut lock on the Ohio River according to a Bloomberg source.
• Independent refineries in China increased their feedstock imports by 13.3% m/m in March to a seven-month high of 17.4 million mt (127.54 million barrels) according to Platts figures.
• China’s new 400,000 bpd mega refinery in Yulong has received government approval to import crude oil directly in 2024 according to Bloomberg sources.
• The Kazakh Energy Ministry has denied reports that Russia asked the country to provide an emergency reserve of gasoline, according to the BBC.
• The recent crude prices increase has prompted weaker fuel oil and naphtha margins according to FGE.
• EU REFINERY MAINTENANCE SCHEDULE - See PDF: https://roar-assets-auto.rbl.ms/files/60800/MNI%20EU%20Refinery%20Maintenace%20Schedule.pdf