Oil Products Summary at European Close: Gasoline Cracks Up

Gasoline cracks have extended gains, while diesel cracks have slipped to near rangebound. However, four-week implied demand for both gasoline and distillates however remains a concern and below all recent years except for 2020.

• US gasoline crack up 0.8$/bbl at 27.08$/bbl
• US ULSD crack up 0.1$/bbl at 23.18$/bbl
• ARA oil product stockpiles according to Insights Global: Inventory type, latest level, weekly change (kmt) as follows: Gasoline: 898, -73, Naphtha: 544, -31, Gasoil: 2,341, +21, Fuel Oil: 843, -696, Jet Fuel: 1,528, +667
• Nigeria’s 650,000 bpd Dangote refinery is seeking million of barrels of US WTI over the next year as it ramps up operations according to documents seen by Bloomberg.
• Europe has received a cargo of 90kt low sulphur straight run fuel (LSSR) produced at Nigeria’s Dangote refinery.
• Russia’s seaborne oil product exports fell 14.6% in April m/m to 8.415mn mt due to refinery maintenance, drone damage and export bans according to Reuters.
• ExxonMobil confirmed its 250,000 bpd Joliet refinery in Illinois has completed planned maintenance and is in the process of restarting operations.
• The world will face a ‘significant’ shortage of products such as diesel, jet fuel, and potentially gasoline within the next four years, as refineries fall behind demand, Rapidan said, cited by Bloomberg.
• Pemex’s Tula refinery in Mexico has been ordered by environmental authorities to reduce processing because of poor air quality in the local area.
• Inventories of middle-distillates in Singapore have fallen to their lowest level since early March, while fuel oil stocks fell to a two-week low
• India’s diesel and gasoline sales rose in H1 May compared to April, data showed.