Oil Products Summary at European Close: Gasoline Cracks Slip

Gasoline cracks have seen further weakness following EIA data showing an expected draw. However, diesel cracks have rallied after an above-expectation stock draw.

• US gasoline crack down 0.7$/bbl at 13.53$/bbl
• US ULSD crack up 0.4$/bbl at 23.39$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Aug 16: Cushing stocks -560, Gasoline stocks -1,606 vs Exp -1,567, Implied mogas demand +148, Distillate stocks -3,312 vs Exp -642, Implied dist demand +27
• China’s major new refinery, Yulong started a trial run of the cracked gas compressor at a 1.5m-ton/yr ethylene unit on Aug. 15, according to the official China Industry News cited by Bloomberg.
• Nigeria will begin selling crude oil to the Dangote refinery in naira from October 1 according to the finance ministry.
• Total oil product stocks at the Port of Fujairah rose to 17.876 million barrels - the first increase in five weeks - from a 10-month low a week earlier, according to FOIZ data for the week ended August 19.
• China’s refined oil market will stay bearish in the near term on an anticipated fall in refining profits, shown by a narrowing crack spread, according to OilChem.
• Singapore’s ultra-low sulphur gasoil front month swap crack vs front month Dubai hit a three-month low as regional stockpiles remained high despite lower export volumes from China, Platts said.
• US jet fuel stockpiles are already at a 14-year high for August but could build even further if imports continue to lag, Argus said.
• MNI COMMODITY WEEKLY: End of Summer Demand Set to Weigh on U.S. Refiners: https://enews.marketnews.com/ct/x/pjJscVPdkO8I6a5hKxh-HA~k1zZ8KXr-kA8x6mUD5GnptIPjO1OcQ