Crude and Cracks Rally After US EIA Inventory Data

Crude edges higher after a slightly larger than expected crude build in the EIA data for the week ending 4 Aug. Diesel and gasoline cracks have rallied with falling stocks and recovering implied demand.

• Crude inventories built with an increase in production and despite a large drop in crude exports and increase in refinery runs. Production increased up to 12.6mbpd after spending the year so far between 12.2 and 12.4mbpd. Net imports of crude oil rose last week to the highest since January 2022. The oil adjustment figure was largely unchanged on the week after recent weekly changes. Cushing stocks showed a small build to halt the recent trend lower.
• Gasoline and distillates stock fell more than expected to keep levels well below normal with a fall in imports and increase in exports offsetting slightly higher production. Gasoline implied demand showed a recovery after the trend lower in recent weeks. Distillates four week average demand gain ground despite a small decline on the week.
  • Brent OCT 23 up 1.4% at 87.4$/bbl
  • WTI SEP 23 up 1.8% at 84.4$/bbl
  • Gasoil AUG 23 up 5.5% at 937.25$/mt
  • WTI-Brent up 0.09$/bbl at -3.72$/bbl
  • WTI SEP 23-OCT 23 up 0.16$/bbl at 0.72$/bbl
  • WTI DEC 23-DEC 24 up 0.45$/bbl at 5.85$/bbl
  • US gasoline crack up 0.7$/bbl at 37.06$/bbl
  • US ULSD crack up 1.4$/bbl at 48.2$/bbl