Oil Products Summary at European Close: Diesel Rallies on Russia Export Ban

Diesel markets rallied following the temporary halt of gasoline and diesel exports from Russia to shore up domestic supply ahead of peak refinery maintenance.

• Gasoil OCT 23 up 4.9% at 1010.5$/mt
• EU Gasoline-Brent up 1.1$/bbl at 16.34$/bbl
• EU Gasoil-Brent up 4.6$/bbl at 36.54$/bbl
• ULSD OCT 23 up 4.1% at 3.46$/gal
• The Russian government has introduced a temporary ban on the export of gasoline and diesel fuel effective immediately to stabilize the domestic market according to the government’s press service.
• Turkish diesel imports were less that 300kbd at the start of the year, reaching just over 500kbd in July – supported by extra Russian barrels. A significant portion of this was then re-exported to Europe.
• Oil product stocks in ARA according to Insights global - Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,326, -89, Naphtha: 183, -19, Gasoil: 1,912, +12, Fuel Oil: 1,078, -72, Jet Fuel: 713, +25
• Russian seaborne diesel and gasoil exports on 1-20 September stood at around 1.7mn tons, down by almost 30% compared with the same period in August, LSEG data showed.
• EU Gasoline-Brent up 0.6$/bbl at 15.81$/bbl
• EU Gasoil-Brent up 1.6$/bbl at 33.55$/bbl
• Oman’s Duqm refinery has completed its start-up processes and aims to begin commercial operations by the end of 2023, according to Zawya.
• Refining margins are expected to remain elevated in the near term due to tight fuel supplies and high consumer demand according to Exxon Mobil.
• Shell is trying to restart its shutdown hydrocracking unit at Pernis by September 25 according to IIR reports of traders familiar with the matter.
• European oil refinery output rose 1% on the month in August to 9.73m b/d, according to Euroilstock data and reported via Reuters.