OIL PRODUCTS: Oil Products Summary At European Close: Cracks Diverge

Diesel cracks have gained further ground today, supported by colder weather likely boosting gasoil heating demand, coupled with a US stock draw last week. Gasoline cracks are down on the day after stocks rose last week.

• US ULSD crack up 1$/bbl at 32.4$/bbl
• US gasoline crack down 0.7$/bbl at 14.71$/bbl
• US 321 crack down 0.1$/bbl at 20.61$/bbl
• API stock data yesterday showed gasoline stocks rose 2.8mbbl and distillates fell 2.7mbbl.
• Singapore total fuel stockpiles fell by 1.69m bbls (-3.6%) w/w to 45.3m bbls in the week to Feb. 19, according to Enterprise Singapore data.
• Diesel imports to the key oil storage hub of Singapore are set to rise to a two year high at 6.7mbbl in February amid higher volumes from South Korea and Taiwan, according to Reuters citing Kpler and LSEG data.
• Kuwait oil product output and exports reached record highs in 2024, driven by the full ramp-up of the 615k b/d al-Zour refinery, Argus reports, citing JODI data.
• China's gasoline market is expected to have a narrow supply surplus of 0.3m mt in February, according to OilChem.
• Asia’s naphtha cracks inched higher today, amid stable demand for March/April deliveries into East Asia, Reuters said.
• Naphtha cracks rose globally on the week as blending demand begins to pick up and US and EU refinery maintenance limits supply, Kpler said.
• Overall Asian cracker maintenance is set to be light this year, Kpler said, impacting naphtha demand.
• Increased tax burden on imported feedstock fuel oil has forced some Shandong-based independent refineries in China to cut their primary facilities in February, Platts reports citing sources.
• Oil refining margins are currently boosted by gas-to-oil switching all around the world, according to Repsol cited by Bloomberg.