Oil Products Summary at European Close: Gasoline Cracks Weakens

Gasoline cracks are weakening further on the day, despite a larger than expected draw in US stocks and a tick-up in implied demand on the week. Implied gasoline demand continues to taper off on a four-week average basis, falling behind the seasonal average.

• US gasoline crack down 1.1$/bbl at 31.85$/bbl
• US ULSD crack down 0.5$/bbl at 25.55$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Apr 12: Gasoline stocks -1,154 vs Exp -940, Implied mogas demand +50, Distillate stocks -2,760 vs Exp -369, Implied dist demand +681
• The European Gasoil prompt time spreads are holding near parity after curve backwardation softened during the first half of April taking the prompt spread to the lowest since May 2023.
• Petronor’s 220kbpd Bilbao refinery is restarting the G1 gasoil desulfurization plant, the firm said on Tuesday.
• Valero shut the small CDU at its 180,000bpd Memphis, Tennessee, refinery on Monday for a planned overhaul according to a Reuters source.
• Motiva Enterprises’ 626kbd Port Arthur refinery in Texas is back at full production following an April 10 power interruption according to Reuters sources.
• Petroleos Mexicanos executives expect refining at the Olmeca refinery (Dos Bocas) to reach 340kb/d by September according to Bloomberg.
• China’s gasoil production is projected to be 53.95m mt in Q2, according to OilChem.
• China’s domestic refineries are expected to carry out extensive maintenance in Q2, bringing CDU utilisation rates to around 70%, according to OilChem.
• Oil product stockpiles at the UAE’s Fujairah climbed for the third successive week to hit an eight-month hight, according to Platts citing data from the Fujairah Oil Industry Zone.