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Oil Products Summary at European Close: Gasoline Cracks Weaken

OIL PRODUCTS

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.
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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.