Oil Products Summary at European Close: US Cracks Spike

US gasoline and diesel cracks rebounded sharply during the European afternoon session, with gasoline erasing some of Friday’s sharp losses. Diesel is now back at levels seen Jan. 4.

• US gasoline crack up 0.5$/bbl at 14.99$/bbl
• US ULSD crack up 0.7$/bbl at 36.75$/bbl
• American refiner PBF intends to shut a CDU this week at its 190,000 bpd Chalmette, Louisiana, refinery according to Reuters sources on Saturday.
• Run rates at Chinese state refiners will rise by 0.6% to 76.02% in January according to OilChem citing a survey.
• India’s oil-product consumption last month rose by 2.6% on the year to 20.054mn tons and the highest level since May, according to provisional data published by the oil ministry’s Petroleum Planning & Analysis Cell.
• China’s gasoline demand is likely to be flat during the week to Jan. 11, according to OilChem, while some end-market players hold out on stockpiling on expectations that retail prices fall.
• Bunker demand at African ports is being supported by mainly containerships diverting around the Cape of Good Hope because of Red Sea Houthi attacks since mid-December according to Lloyds List reporting.
• US gasoline demand rose 2.3% on a weekly basis last Sunday-Saturday versus the week prior according to GasBuddy. It places last week’s demand 6.8% below the four-week moving average as demand seasonally wanes.