Oil Products Summary at European Close: Gasoline Cracks continue Rise

Gasoline cracks have risen higher on the day, as demand shows a slight recovery and stocks fell according to most recent EIA data.

• US gasoline crack up 0.2$/bbl at 10.84$/bbl
• US ULSD crack down -0.8$/bbl at 42.84$/bbl
• Oil product stockpiles in ARA according to Insights Global: - Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 1,366, +3; Naphtha: 175, -19; Gasoil: 1,861, +34; Fuel Oil: 957, -120; Jet Fuel: 741, -11.
• Russia has no current plans to ease remaining restrictions on diesel exports according to Deputy Prime Minister Alexander Novak via Bloomberg.
• High diesel inventories may push down oil processing rates in November and with it, lead to insufficient production of winter-grade diesel, independent oil analyst Mikhail Turukalov said.
• Russian exports of gasoline by railway in the first half of October declined by 80% month on month to 37,000tons, data from market sources and Reuters calculations showed.
• US oil refineries are boosting production of middle distillates such as diesel and jet fuel ahead of the winter amid rising demand and tight supply, although poor gasoline margins are hampering profits, according to Reuters.
• Pemex intends to restart the CDU that shut Monday at its 312,500 bpd Deer Park refinery Texas by early next week according to Reuters sources.
• Maintenance works to units at the 291kb/d Marathon Catlettsburg refinery in northeastern Kentucky processing both sweet and sour crude will extend into late November according to Bloomberg sources.
• Product loadings from Middle Eastern grassroot refineries reached a record high in September according to Vortexa (referring to Jizan, Al Zour and Duqm)
• Atlantic Basin diesel imports from the Middle East and Asia have surged so far in October at ~1.3mn bpd according to Vortexa, up from September and nearly double August’s lackluster pace.