GASOLINE
Weak gasoline markets have already led to run cuts in Asia with refiners elsewhere likely to follow in the coming weeks amid ample supplies, according to Reuters.
- U.S. refiners have ramped up sharply, but demand has disappointed so far this summer amid increasing air travel and more fuel efficient and electric vehicles.
- U.S. gasoline stockpiles are the highest seasonally since 2021, rising by 5.7mbbls since the start of April, while US refinery utilisation is up at 95% despite a slight dip last week.
- EIA showed U.S. gasoline demand was 9.04mbpd in the first week of June, 1.7% below last year and seasonally the lowest since 2021. U.S. retail gasoline demand saw a drop of 1.5% for the week ending June 15 and was 1.1% below the four week average, according to GasBuddy. GasBuddy models U.S. gasoline demand at 8.79mbpd
- The U.S. gasoline crack spread fell to the lowest since February at $21.67/bbl on June 13, according to Bloomberg data.
- Taiwan's Formosa Petrochemical intends to cut run rates at its crude distillation units by 40kbpd to 440kbpd in June, the company said earlier this month.
- New and expanded plants are increasing fuel supplies from the Middle East, India and China but a slower than expected ramp up in gasoline supplies from Dos Bocas and Dangote could provide some support.
- RBOB JUL 24 up 1% at 2.42$/gal
- EU Gasoline-Brent up 0.1$/bbl at 14.33$/bbl
- US gasoline crack up 0.1$/bbl at 22.6$/bbl
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