Oil Products Summary at European Close: Gasoline Cracks Weaken

Gasoline cracks are continuing their fall today as markets remain well supplied globally while demand has been slower at the start of the summer driving season.

• US gasoline crack down 0.2$/bbl at 23.43$/bbl
• US ULSD crack up 0.6$/bbl at 24.18$/bbl
• Euroilstock: Europe 16 nations oil inventories rose by 7mb m/m to 1,020mb in May (April revised down by 1mb): Crude +8mb to 430mb, Gasoline -1mb to 111mb, Middle distillate -1mb to 392mb, Fuel oil unchanged at 60mb, Naphtha +1mb to 28mb.
• Refinery run rates are expected to remain elevated with current product fundamentals set against the impending seasonal upturn in product consumption, according to OPEC.
• US retail gasoline prices fell to $3.297/gal in the week to June 7, down 2.3%, according to the EIA cited by Bloomberg.
• The Ukrainian military claimed responsibility for an attack on the Novoshakhtinsk oil refinery in the Rostov-on-Don region on June 5.
• Delta Air Lines Monroe Energy is planning to take units offline at its 185,000 bpd Trainer, Pennsylvania, refinery in September for four to six weeks, according to Reuters sources.
• China’s refinery runs are declining due to seasonal turnarounds and poor export margins according to Vortexa.
• CDU Capacity Utilisation rates at China’s state-owned refineries are expected to continue falling in the week to June 13, according to OilChem, as Dalian Xitai will overhaul the whole refinery.
• India’s state-run Bharat Petroleum plans to build a new refinery and the country is interested in buying more discounted oil from Russia according to Indian Oil Minister Hardeep Singh Puri on Tuesday.