Oil Products Summary at European Close: Diesel Cracks Tick Up

Diesel crack spreads have rebounded in the European afternoon, although gains are being capped by softer near-term US demand.

• US gasoline crack down 0.7$/bbl at 29.91$/bbl
• US ULSD crack up 0.2$/bbl at 23.9$/bbl
• Global diesel demand is forecast to increase by 340kb/d y/y in 2025, led by a 150kb/d rise in the East of Suez region, according to Energy Aspects via Bloomberg.
• Nigeria’s new mega Dangote refinery is aiming to start supplying 10ppm diesel by 2Q or 3Q according to an email exchange with Bloomberg.
• Purchases of Nigeria’s Crude for May loading are slow with as much as half of cargoes for the month still for sale, according Bloomberg sources.
• Russian refining has slipped to near an 11-month low as flooding impacts refinery operations adding to difficulties after the March drone attacks.
• European oil refinery output fell 4% in March m/m to 9.457 mn bpd according to Euroilstock data – but nearly 1% higher y/y.
• US gasoline demand rose 2.3% last week from the week prior according to GasBuddy data.
• Kuwait’s Al Zour refinery has offered a spot VLSFO tender comprising 120,000 metric tons – expected to load May 2-3, with the tender closing Monday according to a Reuters source.
• Valero reported an emissions event due to a loss of integrity on piping at complex 6 of its Corpus Christi, Texas refinery west plant according to a community alert.
• Phillips 66’s 356kb/d Wood River refinery in Illinois plans turnarounds for September and late Q1 2025, according to Bloomberg sources.
• CDU capacity utilisation rates at China’s state-owned refineries are projected to keep falling in the week to April 25, according to OilChem.