Oil Products Summary at European Close: Gasoline Cracks Sink

Gasoline cracks are continuing to trade lower after EIA data showed a small, unexpected build in US stocks. Four-week implied demand is still below all recent years except 2020 despite edging higher on the week. Gasoline cracks remain at their lowest level since mid-Feb.

• US gasoline crack down 1.1$/bbl at 27.15$/bbl
• US ULSD crack up 0.2$/bbl at 25.18$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending May 03: Gasoline stocks +915 vs Exp -1,255, Implied mogas demand +179, Distillate stocks +560 vs Exp -1,098, Implied dist demand -189.
• The Russian Energy Ministry proposed to lift the ban on gasoline exports for May-June due to oversaturation of the domestic market, according to Kommersant.
• China’s Shandong refiners are bringing forward planned maintenance due to bearish margins - curtailing imports of discounted crude.
• Independent U.S. refiner HF Sinclair plans refinery runs of between 620k-650kbpd in the Q2 2024
• A Petrobras refinery, the 201,280 bpd Alberto Pasqualini in Brazil is facing difficulty shipping fuel because of heavy flooding.
• Fujairah oil product stockpiles dropped for a third consecutive week as of May 6 according to Fujairah Oil Industry Zone figures.
• The Middle East is on track to become the world’s largest consumer of road fuels and a major driver of demand growth in the coming decades, according to BNEF.
• Oil markets in Asia are showing signs of weakness as a fall in diesel margins below seasonal normal weighs on Middle Eastern crudes supplied to the region, Bloomberg said.
• The global jet fuel market has shown signs of recovery, but demand for diesel remains weak in several regions, Sparta Commodities said.