OIL PRODUCTS: Oil Products Summary at European Close: Cracks Mixed
Jul-11 15:22
Diesel cracks are higher today amid gains in underlying diesel pricing, though are set for a slight net weekly decline. Gasoline cracks are facing pressure from a rise in underlying crude pricing.
- US ULSD crack up 0.7$/bbl at 34.11$/bbl
- US gasoline crack down 0.4$/bbl at 23.18$/bbl
- US 321 crack down 0$/bbl at 26.83$/bbl
- EU Gasoil-Brent up 1$/bbl at 22.98$/bbl
- EU Gasoline-Brent down 0.5$/bbl at 14.83$/bbl
- Refinery runs in OECD Europe are estimated to have increased by 110k b/d in June to 11m b/d, according to the IEA’s Oil Market Reports cited by Bloomberg.
- Pemex is in the process of ramping up the Dos Bocas refinery in Mexico following a total shutdown caused by a power issue, according to a document seen by Bloomberg.
- A fire broke out at a storage tank at Citgo Petroleum’s 455kb/d Lake Charles refinery on July 10 after a lightning strike, according to a Bloomberg source.
- India’s BPCL will shut its sole crude unit at its 156,000 bpd Bina refinery in central India for 15 days of maintenance from August 11 Reuters reports citing executives.
- Tatneft has started the second combined hydrocracking unit at its Taneco refinery, Bloomberg reports citing Interfax.
- European air traffic recorded 34,860 average daily flights in the seven days to July 6, up around 0.1% on the week across the top ten countries, according to Eurocontrol
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TARIFFS: Lutnick Says China Won't Get "Our Best Chips"
Jun-11 15:21
Reuters carrying comments from US Commerce Secretary Howard Lutnick, speaking to CNBC on the US-China trade framework struck after two days of talks in London.
- Lutnick notes that US President Donald Trump and Chinese President Xi Jinping have to “approve final wording” of the deal. The tone of Trump’s Truth Social post earlier today suggests he is likely to endorse the agreement.
- Lutnick said: “China is going to approve all applications for magnets for US companies,” referring to rare earth components that are critical for a range of high-tech products.
- Lutnick appeared to suggest that the tariff rate agreed in London will be final: “You can say China tariff levels won't change from here.”
- On export controls, which come under the purview of his Commerce Department, Lutnick said the Chinese side “always wants to remove export controls,” but added "We are not going to give China our best chips.”
- Lutnick continued, “They've agreed we are going to examine how China can do more business with us.”
- In his ongoing testimony to the House Ways and Means Committee, Treasury Secretary Scott Bessent noted a short time ago that the Trump administration will continue to take a firm line on China’s industrial overcapacity.
- Speaking more broadly on trade, Lutnick said, “deal after deal” will start coming next week. Bloomberg reports that EU negotiators see trade talks stretching beyond the July 9 deadline, despite an uptick in talks.
FED: US TSY 17W AUCTION: NON-COMP BIDS $564 MLN FROM $60.000 BLN TOTAL
Jun-11 15:15
- US TSY 17W AUCTION: NON-COMP BIDS $564 MLN FROM $60.000 BLN TOTAL
EU-UK: Agreement Reached On Gibraltar As EU To Manage Border Checks
Jun-11 15:08
European Commissioner for Trade and Economic Security Maros Sefcovic has confirmed the EU, UK and Spain have reached an agreement on the status of the British Overseas Territory of Gibraltar. Reuters reports the UK Foreign Office says that "The UK, alongside the gov't of Gibraltar, reaches a political agreement with the EU to protect British sovereignty, UK military authority, and secure Gibraltar's economic future. The agreement provides a practical solution to avoid the need for 'onerous checks' and long delays at the border."
- The joint statement confirms that "the Parties agreed to establish dual Gibraltar and Schengen border checks at Gibraltar port and airport – to be carried out in full cooperation between the EU and UK/Gibraltar authorities, removing all checks at the crossing point between Gibraltar and La Linea [...]. For the EU, full Schengen checks will be carried out by Spain. For the UK, full Gibraltar checks will continue to be carried out as they are today. " The Daily Telegraph reported earlier the system will mirror that used for the Eurostar train service, with UK border guards checking passports first, then French (or in Gibraltar's case, Spanish) guards checking on British soil to ensure a frictionless exit.
- For the UK, retaining Gibraltar's ability to act as a strategic military base has been of paramount concern. It remains to be seen how Spain effectively policing entry to the British territory affects the operations of the UK armed forces on the rock.
