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Crude and Diesel Hold onto Losses and Gasoline Falls After US Stocks Data

OIL

Crude holds onto earlier losses after a big build in US crude inventories due to lower refinery utilisation. Gasoline crack spreads have pulled back from earlier gains and diesel cracks remain weak with little sign of a recovery in US product demand.

  • Crude inventories showed a big build as refinery runs fell with output impacted by the strong maintenance season. Refinery rates had not recovered following the December cold weather disruption before units have started going offline for maintenance.
  • The build came despite a drop in imports, higher exports and with production levels holding at recent highs. Cushing inventories reached the highest since Jun 2021.
  • Distillate stocks saw a decline with the lower production and with a sharp reversal in imports following the surge higher last week. Gasoline stocks were boosted by a drop in gasoline exports.
  • The four week distillate and gasoline implied demand remained relatively unchanged with distillates falling back below the five year range.
    • Brent APR 23 down -1% at 84.76$/bbl
    • WTI MAR 23 down -1.1% at 78.2$/bbl
    • WTI-Brent down -0.08$/bbl at -6.34$/bbl
    • WTI MAR 23-APR 23 down -0.04$/bbl at -0.22$/bbl
    • WTI JUN 23-DEC 23 down -0.08$/bbl at 2.37$/bbl
    • US gasoline crack down -0.4$/bbl at 25.08$/bbl
    • US ULSD crack down -1.3$/bbl at 42.34$/bbl

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