Oil Products Summary at European Close: Gasoline Cracks Climb

Gasoline cracks have recouped some their earlier gains on the day after moving to near rangebound in the afternoon. While four-week implied demand edged higher last week, it remains below all recent years except 2020.

• US gasoline crack up 0.3$/bbl at 27.75$/bbl
• US ULSD crack down 0.1$/bbl at 25.04$/bbl
• A Kyiv intelligence source said to Reuters the recent hit on a Russian oil processing plant in the Bashkiria region it was a “record” distance for a drone strike of 1500km.
• Exxon Mobil plans maintenance at its 270kbpd Fawley oil refinery in the UK in the autumn, according to Bloomberg sources.
• Exxon Mobil’s Baton Rouge 523kbd refinery shut its 110kbd Pipestill 9 crude unit and several associated units for planned work according to Bloomberg sources.
• Kuwait Petroleum Corporation is offering VLSFO for loading between July and December, in a tender that closes on May 14 according to Reuters sources.
• It is expected that CDU capacity utilisation rates at China’s domestic refineries will average 68.58% in May, down 1.3 percentage points on the month, and 3.05 percentage points on the year, OilChem said.
• China’s Independent Refiners are likely to cut their fuel oil imports in May amid weak cracking margins and higher import costs, according to Platts.
• China’s refined oil production in June is expected to rise both on the month and on the year, according to OilChem.
• China saw more than 1.3 billion passenger trips over the five-day Labour Day holiday that began on May 1 – 2, up 1% on the year.
• Singapore onshore fuel oil stocks rose to a three-week high in the week ended May 8 to 20.75m bbl (3.27m mt).
• European jet/kero imports moved above the seasonal range in April but April loadings suggest a reduced import program ahead according to Vortexa.