OIL PRODUCTS: Oil Products Summary at European Close: Cracks Fall
Cracks have fallen after Iran said it was reviewing a US response to its proposal to end hostilities. Meanwhile, US Energy Sec. Wright said that a diesel export ban would not work, which follows comments by Trump on Tuesday in support of a ban. * US ULSD crack down 8.9$/bbl at 101.64$/bbl * US gasoline crack down 0.1$/bbl at 45.34$/bbl * US 321 crack down 8.1$/bbl at 64.1$/bbl * EU Gasoil-Brent down 3.5$/bbl at 85.81$/bbl * EU Gasoline-Brent up 0.3$/bbl at 41.48$/bbl * There are calls from US politicians to ban diesel exports with Republican Hinson the latest and Trump supporting the idea by saying he would back a ban, which would exacerbate global shortages. * However, Energy Secretary Wright said on Wednesday that a diesel export ban would not work and that it would raise gasoline and jet fuel prices. * A US diesel ban would see USGC refiners maximise yield shift towards jet and mogas production, before storing any diesel export length, sending heating oil spreads into contango, according to Sparta Commodities' June Goh. * A US ban on diesel exports would immediately drive-up prices across Europe, Latin America and America's West Coast, according to Kpler cited. * Oi
Cracks have fallen after Iran said it was reviewing a US response to its proposal to end hostilities. Meanwhile, US Energy Sec. Wright said that a diesel export ban would not work, which follows comments by Trump on Tuesday in support of a ban. 48$/bbl * There are calls from US politicians to ban diesel exports with Republican Hinson the latest and Trump supporting the idea by saying he would back a ban, which would exacerbate global shortages.
* However, Energy Secretary Wright said on Wednesday that a diesel export ban would not work and that it would raise gasoline and jet fuel prices. * A US diesel ban would see USGC refiners maximise yield shift towards jet and mogas production, before storing any diesel export length, sending heating oil spreads into contango, according to Sparta Commodities' June Goh. * A US ban on diesel exports would immediately drive-up prices across Europe, Latin America and America's West Coast, according to Kpler cited. 296m bbl, according to FOIZ data cited by Platts.
* Russia's refinery runs remained largely unchanged w/w at around 4m b/d between Sep 10-16 according to a Bloomberg source. 69mbbl with a dip in production and small increased in weekly implied demand. 4mbbl largely in the Midwest, with a dip in production and imports set against a drop in exports to the lowest since late June and higher weekly implied demand.