Oil Products Summary at European Close: Gasoline Cracks Erase Gains

Gasoline crack spreads have erased earlier gains to be rangebound on the day, while diesel cracks remain trading higher. Refined products remain under pressure due to relatively lacklustre summer demand.

• US gasoline crack down 0$/bbl at 23.49$/bbl
• US ULSD crack up 0.3$/bbl at 24.97$/bbl
• US gasoline stockpiles were seen falling 0.5m bbl last week, according to a Reuters survey of six analysts. Distillate stockpiles are seen up just 30k bbl.
• US gasoline stockpiles were seen falling 1.42m bbl last week, according to a Platts survey. Distillate inventories are seen down by 240k bbl
• TotalEnergies 238kb/d Port Arthur refinery in Texas returned to normal operation over the weekend, according to Reuters sources.
• ExxonMobil's 252kbpd Joliet refinery, Illinois, remains shut and without power after a total shutdown on July 15 following a tornado, according to spokeswoman Catie Tuley cited by Bloomberg.
• Rosneft’s Tuapse refinery continues to operate after a drone attack on Monday which caused a fire according to Deputy PM Alexander Novak speaking to Interfax.
• Russia will reinstate its gasoline export ban in August while the Energy Ministry has proposed the ban be extended into Sep-Oct according to Deputy PM Alexander Novak.
• China’s new mega 400,000 bpd Yulong petrochemical refinery intends to start test runs around September 30 according to Reuters sources.
• The risk of refining run cuts in the US and Europe will accelerate starting in 4Q, according to Energy Aspects.
• China’s jet fuel production showed an annual growth of 23.9% in H1 2024, the fastest in history, OilChem said.