Crude and Cracks Softer Amid Weaker EIA Product Demand

Crude markets are maintaining earlier losses after an unexpectedly large draw in crude stocks but with declining oil products demand again. Diesel and gasoline cracks are slightly softer following the bigger than expected builds.

• US crude stocks showed a larger than expected draw with an increase in refinery runs and drop in production from the record levels. The draw is despite exports easing lower and a surge in imports. The unaccounted oil adjustment figure also showed a big drop on the week.
• Refinery utilisation rose as expected to the highest since mid September and Cushing stocks rose although less than suggested by the API data.
• Gasoline four week implied demand fell again despite a weekly rise. Consumption is now 240kbpd below the seasonal five year average. The weaker demand combined with the recovery in refinery runs to boost stocks more than expected with the largest gains on the Gulf Coast and East Coast. A decline in exports and increase in imports also added to the build.
• Distillates stocks also rose on the week with a drop in exports although remain at season lows despite higher production. Implied distillates demand rose on the week but the four week average fell again to stay below the five year range.
  • Brent FEB 24 down -2.5% at 75.25$/bbl
  • WTI JAN 24 down -2.9% at 70.19$/bbl
  • WTI-Brent down -0.05$/bbl at -4.79$/bbl
  • WTI JAN 24-FEB 24 down -0.05$/bbl at -0.26$/bbl
  • WTI JUN 24-DEC 24 down -0.16$/bbl at 1.24$/bbl
  • US gasoline crack down -0.9$/bbl at 15.69$/bbl
  • US ULSD crack down -0.2$/bbl at 38.28$/bbl