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

Diesel cracks are lower today with a drop in demand and inventory build adding to concern for future demand. Gasoline cracks are also softer following a small US stock build.

• US gasoline crack down 0.5$/bbl at 23.43$/bbl
• US ULSD crack down 1.4$/bbl at 27.52$/bbl
• Gasoline stocks edged up by 0.37mbbl with an increase in imports set against higher weekly implied demand. The four-week average implied gasoline demand edged higher to follow the seasonal trend and remain just below the previous five year average.
• Gasoline cracks and spreads are searching for support as the physical market softens, according to Sparta Commodities. 
• Distillates stocks unexpectedly rose by 3.9mbbl with an increase in production, imports and a drop in weekly implied demand. The four week average implied demand pulled back from the high levels seen through early Feb due to the cold weather.
• Saudi Arabia's 2024 gasoline exports reached an over six-year high of 280,500 b/d amid refinery upgrades and domestic demand remaining below pre-Covid levels, Argus said.
• In January, Pemex’s seven refineries operated at less than half installed capacity for a fifth month at 887kb/d, or 45.1% of capacity, as Dos Bocas processed no crude, according to company data cited by Bloomberg.
• Rosneft’s Tuapse refinery temporarily halted crude intake on Wednesday, Bloomberg reports citing source.
• New refining start ups are adding little product supply amid a mix of maintenance, outages and start-up delays, Vortexa said at its IE week conference.
• Jet is the product with the highest chance for prices and cracks to strengthen in 2025, with the strength coming from the supply side, Vortexa said.