OIL PRODUCTS: Oil Products Summary at European Close: Cracks Fall
Cracks have generally fallen following the 2-week ceasefire announcement, though recovered some losses as attacks on regional infrastructure appear to have continued on Wednesday.
- US ULSD crack down 9.4$/bbl at 67.06$/bbl
- US gasoline crack up 2.7$/bbl at 30.06$/bbl
- US 321 crack down 1.3$/bbl at 42.39$/bbl
- EU Gasoil-Brent down 7.9$/bbl at 45.11$/bbl
- EU Gasoline-Brent down 2.5$/bbl at 21.66$/bbl
- Explosions were heard at Iran’s 55k b/d Lavan refinery, according to Iranian media, with some outlets suggesting Israeli strikes were to blame. Iran’s state refiner confirmed the attack and said it was working to extinguish a fire at the facility.
- Oil product stockpiles in the UAE’s port of Fujairah were reported at 12.555m bbl as of Apr 6 as they fell to their lowest since stock reporting began in 2017, according to FOIZ data cited by Platts.
- Crude storage capacity utilisation rates among Shandong Independent refineries rose 0.4 percentage points on the week to 43.4% for the seven days to April 8, OilChem said.
- Japanese oil refineries cut utilisation rates to 67.7% capacity in the week to April 4 from 72.5% a week ago.
- Russia’s refinery runs fell to an average of 4.81m b/d as of Apr. 1 after recent Ukrainian drone strikes, compared to 5.43mb/d in the week to Mar. 25, according to Bloomberg.
- Asia’s fuel oil market weakened on Wednesday following news of a two-week US-Iran ceasefire, which eased immediate supply concerns, Reuters reported.
- EIA data showed gasoline stocks fell as expected by 1.59mbbl driven by a rise in exports up to nearly 1.58mb/d. Weekly implied demand edged higher while production was almost unchanged on the week. Distillates stocks fell more than expected by 3.1mbbl with a rise in exports set against higher weekly implied demand.
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FED: US TSY 26W AUCTION: NON-COMP BIDS $1.502 BLN FROM $77.000 BLN TOTAL
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IRAN: Larijani Downplays Chances Of De-Escalation After Macron Pledges Escorts
Secretary of Iran's Supreme National Security Council, Ali Larijani, indicates that any de-escalation in the Middle East is unlikely to be achieved by countries viewed as close to the US or Israel, referring to European nations. Larijani posts on X: "It is unlikely that any security will be achieved in the Strait of Hormuz amid the fires of the war ignited by the United States and Israel in the region, especially if that is by the design of parties that were not far removed from supporting this war and contributing to its fanning."
- Larijani's comments come in response to French President Emmanuel Macron's statement that French naval vessels would provide security escorts through the Strait of Hormuz for container ships and tankers. Speaking in Cyprus, Macron said he wanted the "purely defensive" operation to begin as soon as possible, adding that this can only happen when the fighting in the Middle East has died down.
- Earlier, European Commission President Ursula von der Leyen and European Council President Antonio Costa held a videoconference with leaders from the GCC states, Turkey, Iraq, Jordan, Lebanon, Armenia, Egypt and Syria. In a joint statement, the two EU leaders said they "expressed their openness to further tailor and enhance" operations Aspides and Atalanta, joint European naval operations initially intended to protect shipping in the region from Houthi rebels in Yemen, in order to better respond to the situation.
