ExxonMobil’s Fawley Refinery (UK) hit by major outage
One of the core refining units at Exxon’s Fawley facility (the UK’s largest refinery) experienced an unplanned shutdown on August 5.
The outage impacted jet fuel and diesel supply across Northwest Europe and the Mediterranean.
Result:
Spot diesel and jet fuel prices rebounded on tighter supply.
Middle distillate cracks widened temporarily.
🔗 Source: Argus Media, August 5
This could significantly affect Q4 diesel availability, especially from Turkish refiners and Indian exporters, tightening supply ahead of winter.
Dangote refinery (Nigeria) halts FCC unit
Nigeria’s Dangote Refinery — the largest in Africa — temporarily shut down its RFCC (residual fluid catalytic cracker), a key unit used for gasoline production.
This led to a spike in spot gasoline demand in West Africa, and increased pressure on Mediterranean gasoline supplies.
🔗Source: Bloomberg, August 5
Traders expect increased cargo movements from Europe to WAF (West Africa), tightening European gasoline availability and raising spreads.
Propane (CIF ARA) contracts soften — signs of LPG fatigue
Mini Propane CIF ARA (Argus August futures) fell to $447.92/mt, losing $0.66 over the session.
Market signals:
The spread between ARA and AFEI narrowed to ~70 $/mt.
Differential between Propane daf Brest and ARA also fell below $135.
🔗 Source: Barchart – Propane CIF ARA futures
The Eastern European LPG market is showing early signs of oversupply or demand hesitation — especially after months of elevated Ukrainian imports.
ULSD CIF Med holds above $760/mt — still the strongest link
Ultra-Low Sulfur Diesel (10 ppm CIF Mediterranean) futures for August are trading at $761.92/mt, according to CME Group.
Despite some short-term softness, the diesel market remains relatively stable, supported by:
Tight supply post-Exxon outage
Solid regional demand
Steady cracks vs Brent
Source: CME Group – ULSD CIF Med futures
Traders are watching for any disruption in flows from the Middle East that could drive prices even higher.
