Summary at European Close: Gasoline Cracks Under Pressure

Gasoline cracks are trending lower on the day, under pressure from yesterday’s EIA data showing a drop in both exports and demand. Diesel cracks, meanwhile, have found support today, following the inventory draw.

• US gasoline crack down -0.5$/bbl at 18.5$/bbl
• US ULSD crack up 1.6$/bbl at 38.15$/bbl
• Oil product stockpiles in Europe’s ARA region according to Insights Global. Inventory type, latest level, weekly change (all in thousand metric tons) as follows: Gasoline: 840, -35, Naphtha: 308, +43, Gasoil: 1,695, -148, Fuel Oil: 1,481, +102, Jet Fuel: 739, -13
• Citgo’s 455kb/d Lake Charles refinery in southwest Louisiana is to start a multiunit turnaround beginning in late February according to Bloomberg sources.
• Valero refining throughput volumes averaged 3.0mn bpd in the fourth quarter of 2023, -1.5% y/y.
• The Parkland 55kb/d Burnaby refinery in British Columbia, Canada shut down processing operations for approximately four weeks according to the company yesterday.
• Asian refiners are selling February loading gasoil/jet fuel cargoes at their deepest discounts in at least two months due to surging freight rates driven by Red Sea disruption according to Reuters sources.
• Indian oil products demand is expected to grow by 3% in the 2024/25 fiscal year starting 1 April, the slowest pace in four years, amid slowing economic activity according to data from the oil ministry’s Petroleum Planning and Analysis Cell.
• Clean tanker freight rates from Europe-bound voyages have hit their highest level in nearly four years amid longer voyages due to shippers avoiding the Red Sea, Platts said.