Oil Products Summary at European Close: Gasoline and Diesel Crack Trends Diverging

Gasoline cracks are set for another strong net gain on the week of around 31%, with some limited demand support and boosted by a downward trend in crude. In contrast, while diesel is up on the day, its set for near 7% losses since the start of the week. Trucking demand for fuel in the US remains slow and amid a decline in industrial and economic activity in Europe.

• US gasoline crack down 0$/bbl at 15.23$/bbl
• US ULSD crack up 0.1$/bbl at 38.56$/bbl
• Front-month time spreads for diesel are weaker in Asia amid rising stocks and following the signs of softer global consumption signalling more bearishness for oil markets according to Bloomberg. The 10ppm gasoil front-month time spread in Singapore has today fallen to 0.30$/bbl from almost 4.70$/bbl in Sept.
• Regional stockpiles of middle-distillate fuels such as gasoil, kerosene and jet fuel in the Asian trading hub of Singapore rose to the highest in more than two years.
• Data this week showed Singapore Middle Distillates inventories up to just 5.5% below the seasonal five-year average from as much as 19% below in late October.
• BP is restarting the Gelsenkirchen refinery in Germany as of 8 November after several weeks of planned maintenance, the firm said.
• Diesel inventories in China fell in the week to Nov 10 by -0.6% w/w to the lowest since Sep 28 at 16.3m tons according to Bloomberg based on OilChem data. Gasoline inventories rose by 0.3% w/w to 13.3m tons.
• Russian fuel producers have been told by the government that the remaining restrictions on diesel and gasoline exports will be lifted next week, three industry sources told Reuters on Thursday.