Oil Products Summary at European Close: Gasoline Rangebound

Gasoline crack spreads have reversed some earlier gains to be trading rangebound on the day. Refinery margins still support high refinery utilisation with relatively strong distillate demand and tight supplies offsetting the weak gasoline demand amid high US pump prices after the end of the peak summer season.

• US gasoline crack up 0$/bbl at 9.01$/bbl
• US ULSD crack down -0.6$/bbl at 40.38$/bbl
• China’s gasoline and gasoil prices are expected to see pressure from flatlining demand and bearish market sentiment, according to OilChem.
• Russian oil product exports fell in the first week of October – with diesel outflows at a three year low according to Bloomberg analysis of Vortexa data. Oil product exports dropped to ~2.3mbpd in the first week of October, down 91kbpd from the previous month.
• Russia is ready to increase petroleum product exports to Saudi Arabia according to Deputy PM Alexander Novak.
• Brazil Mines and Energy Minister Alexandre Silveira said the country will continue to import Russian diesel as long as supplies are required to help ease domestic fuel pump prices according to Bloomberg.
• The Kirishi oil refinery near Russia’s Baltic coast is still facing diesel overstocking issues due to the country’s short-term ban on exports of the road fuel, according to Tass, citing Vladimir Bogdanov, CEO for Surgutneftegas.