Oil Products Summary at European Close: Gasoline Cracks Rangebound

Gasoline cracks have moved to rangebound on the day with an uptick in the European afternoon. Indications of improving demand - according to GasBuddy data - is likely to be supportive amid ample supply.

• US gasoline crack down 0$/bbl at 22.76$/bbl
• US ULSD crack down 0.6$/bbl at 22.95$/bbl
• The refineries of Al Zour (Kuwait), Dangote {Nigeria) and Duqm (Oman) have increased clean product supplies by 700,000 bpd in June, weighing on product margins and adding to a crude to product shift according to Vortexa.
• Chinese independent refinery utlisation rates are expected to remain low in July on poor margins.
• Chinese independent refiners’ consumption of Malaysian Blend in H1 2024 (mostly comprised of Iranian crudes) increased by 61.8% y/y to 11.18m mt, JLC said.
• Russia has sent ultra-low sulphur diesel for storage in Singapore and West Africa, as demand west of Suez has slowed, according to Reuters sources.
• The UK’s Stanlow refinery, run by Essar, plans to boost spending on its site to provide more domestic fuel after Scotland’s Grangemouth plant closes next year.
• Private Indian refiner Nayara Energy is planning to shut a delayed coker and other units at its 400,000 bpd Vadinar refinery according to Reuters sources.
• India’s diesel and gasoline sales fell in the first 15 days of July compared to June levels.
• US retail gasoline prices rose to $3.388/gal and diesel prices fell to $3.826/gal in the week to July 12, according to Bloomberg citing the EIA.
• Kuwait Petroleum offered 80,000 metric tons of HSFO for loading between July 29 and 30, according to Reuters sources. The tender closes on Tuesday with same-day validity.