Oil Products Summary: Gasoline Cracks Trend Higher

Gasoline crack spreads are extending the trend higher seen this week supported by data on 9 Aug showing another drop in total US stocks mostly driven by a decline on the Gulf Coast. EIA data this week showed total US stocks 7.1% below the five-year average for this time of year.

• New York gasoline imports have slowed to around 310kb/d so far in August, down from 390kb/d in July and 440kb/d in June.
• Several Saudi gasoline cargoes have been diverted to the Bahamas since the biggest East Coast refinery at Bayway restarted last month.
• Drivers in the US are covering record miles but are using less gasoline due to more efficient vehicles. June broke a travel record for that month with 283 trillion vehicle miles but implied gasoline demand for the month was 5% below the 2019 level.
• RBOB SEP 23 up 1.6% at 2.95$/gal
• EU Gasoline-Brent up 1.3$/bbl at 27.28$/bbl
• US gasoline crack up 1.3$/bbl at 40.47$/bbl
• China’s inbound shipments of fuel oil fell from a record set in June as a local bottleneck eased and refiners received a fresh import quota. Imports declined to 330kbpd in July, down from June’s peak of 432kbpd according to Kpler.