Oil Products Summary at European Close: Product Cracks Down

Diesel and gasoline cracks have softened during the day, despite an increase in demand for the latter in the EIA data. Distillate demand fell on the week with the four week average back below the five year average despite a small gain on the week.

• US gasoline crack down -1.2$/bbl at 7.73$/bbl
• US ULSD crack down -0.5$/bbl at 42.37$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Oct 06: Gasoline stocks -1,313 vs Exp -128, Implied mogas demand +567, Distillate stocks -1,837 vs Exp -712, Implied dist demand -145.
• Brazil will continue to import Russian diesel to contain prices for its domestic market according to Minister Alexandre Silveira.
• Barge rates for shipments of diesel to the Upper Rhine and into Switzerland from the ARA hub are rising amid low Rhine River levels and German refinery maintenance according to Bloomberg.
• 60% of Russian seaborne crude is now shipped by tankers outside the G7 price cap’s jurisdiction, further complicating enforcement, according to Platts.
• Europe is struggling to boost its diesel imports, according to Bloomberg, amid a fall in arrivals from traditional suppliers such as Saudi Arabia and the USA.
• Moscow revised its October plan for seaborne diesel exports, increasing volumes by 334k b/d, according to Bloomberg.