Oil Products Summary at European Close: Diesel Falls Further

Diesel cracks continue to pull back as Russia is ready to partially lift its diesel ban in the coming days by allowing pipeline exports subject to quotas.

• US ULSD crack down -1.5$/bbl at 43$/bbl
• US gasoline crack down -0.6$/bbl at 8.25$/bbl
• US ULSD crack down -1.4$/bbl at 43.13$/bbl
• Gasoil OCT 23 down -3.3% at 919.5$/mt
• The latest weekly EIA oil data showed four week average US gasoline demand fell to the lowest since mid-February and the lowest for this time of year since 1997.
• EIA Weekly US Petroleum Summary - w/w change week ending Sep 29: Gasoline stocks +6,481 vs Exp +192, Implied mogas demand -605, Distillate stocks -1,269 vs Exp -156, Implied dist demand -157, Tot product stocks +6,862
• The 615kbpd Al-Zour refinery will start operations at its third unit within a few weeks, before the end of October, KUNA cited KIPIC spokesperson Abdullah Al-Ajmi.
• Russia’s export ban on diesel and gasoline helped to stabilize the domestic market, according to Russia’s Deputy PM Alexander Novak and reported by Bloomberg.
• Russian diesel exports fell by 57% after Moscow introduced the ban from 21 September, Vortexa data showed, cited by Bloomberg.
• Russian wholesale gasoline and fuel prices rose Oct. 4 following reports that the fuel ban may be eased, according to Reuters.
• Flows of CPP from East Asian refiners to Latin America reached a record high of 300kbpd in September and are set to continue into October according to Kpler.