October 09, 2023 15:29 GMT
Oil Products Summary at European Close: Diesel Trends Lower
Diesel cracks are drifting lower on the day as the market assesses the partial lifting of the Russian fuel exports.
- US gasoline crack down -1.1$/bbl at 8.14$/bbl
- US ULSD crack down -0.7$/bbl at 38.66$/bbl
- Russia has imposed a diesel export quota on fuel producers. This month, exports are not allowed to exceed the average of the past 8-months.
- Russia’s Transneft resumed loading of oil products on Saturday. Around 26k mt of diesel left the Port of Novorossiysk, while 43k mt was exported from Primorsk.
- The Russian ban on gasoline exports remains in place, while diesel exports by rail are also banned according to Russia’s Deputy PM Novak on Monday.
- The Russian energy ministry said the share of ‘gray’ oil product exports was a small percentage but enough to disrupt the market.
- Russian refineries cut processing rates in early October to lowest in 19-weeks.
- Russia intends to increase fuel production to 131mn tons in 2023 – up from 127mn tons in 2022 according to a federal budget draft.
- PETROBRAS SEES VOLATILITY AT DIESEL PRICES AFTER ISRAEL ATTACK -bbg
- Exports of refined products from China in September are estimated to have been 4.01m mt, up 28% compared to August, according to OilChem’s tracking of ship schedules.
- Shell’s 310kbpd Miro refinery in southwest Germany has started planned maintenance on 7 October according to a statement, cited by Bloomberg. Bloomberg previously reported the maintenance was already underway and scheduled to end on 31 October.
- Nigeria will become a net exporter of petroleum products by the end of 2024, according to NNPC’s Group Managing Director Mele Kyari.
- Global airline capacity has fallen to 110.5m in the week commencing Oct. 9, according to OAG, down 1.1% on the previous week.