Oil Products Summary at European Close: Gasoline Crack Rises

Gasoline cracks are maintaining today’s gains following a modest US stock draw and slight recovery in demand. However, low distillates demand still weighs on diesel despite another gain on the week.

• US gasoline crack up 0.8$/bbl at 26.17$/bbl
• US ULSD crack down 0.2$/bbl at 23.42$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending May 10: Gasoline stocks -235 vs Exp +724, Implied mogas demand +78, Distillate stocks -45 vs Exp +505, Implied dist demand +342.
• Global gasoline demand will remain robust this summer despite recent market signs of weakness, according to Rystad Energy cited by Bloomberg.
• The 220kbpd Bilbao oil refinery is starting a two-month shutdown for maintenance expected until the second half of July, according to operator Petronor.
• ExxonMobil has finished annual maintenance at its 250,000 bpd Joliet refinery in Illinois according to Reuters sources.
• CVR has restarted several key units at its 75,000 bpd Wynnewood, Oklahoma refinery and expects normal operations by the end of Q2 Argus reports.
• Phillips 66’s Wood River oil refinery in Illinois had a compressor trip at 3:30am local time on May 14, according to an Illinois Emergency Management Agency filing.
• China’s Hualu Engineering has signed a deal to develop Iraq’s 300,000 bpd Al-Faw refinery according to INA reports.
• The Dung Quat refinery in Vietnam is running at full capacity after being shut down for major maintenance from mid-March according to company officials.
• Jet Fuel demand in Europe is set to rise amid a surge in flight numbers according to Rystad Energy.
• China’s gasoline price drop will slow in late May due to more intensive refinery maintenance and a narrow oversupply, despite an overall bearish picture, OilChem said.
• Oil stocks in Fujairah have dropped to a two-month low according to Fujairah Oil Industry Zone Data.