Oil Products Summary at European Close: Gasoline Cracks Climb

Gasoline cracks have gained further ground today in reaction to a rise in gasoline implied demand, a higher-than-expected stock draw, and continued drone attacks on Russian refineries.

• US gasoline crack up 0.8$/bbl at 33.02$/bbl
• US ULSD crack down 1.5$/bbl at 30.94$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Mar 15: Gasoline stocks -3,310 vs Exp -2,336, Implied mogas demand -235, Distillate stocks +624 vs Exp -239, Implied dist demand +411
• Gasoline prices and cracks could still climb higher in 2024 despite expectations for lower demand, according to Bank of America.
• Kuwait’s three refineries are currently processing 1.4 mn bpd of crude daily and expect to raise rates that to 1.6 mn bpd “soon” according to Kuwait Petroleum chief, Sheikh Nawaf Al-Sabah on Tuesday.
• Kuwait’s KPC has issued a semi-term tender offering HSFO for loading between April to June according to Reuters sources.
• Russia is increasing fuel production and eliminating logistics constraints following oil refinery attacks by Ukrainian drones in recent weeks according to Energy Minister Nikolai Shulgino.
• UAE's Port of Fujairah oil product stockpiles rose 10% to an eight-month high in the week ended March 18 according to Fujairah Oil Industry Zone data.
• Petronor’s Bilboa refinery, Spain, is restarting a visbreaker according to a company statement.
• Elevated near-term supply concerns in the past week, coupled with a bearish outlook for Q3, will likely drive the Japan naphtha front-quarter time spread to its highest monthly average since July 2022, Platts said.
• Russia is discussing the possibility of increasing fuel production at refineries where it has not been stopped, according to Russian Energy Minister Nikolai Shulginov based on Interfax reports.