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Crude and Gasoline Markets Fall After EIA Stock Builds

OIL

Crude market extends earlier declines after a larger than expected build in US crude inventories according to the updated weekly EIA petroleum data. Gasoline cracks have pulled back from earlier gains on softer demand while diesel spreads are stable with a pause in the weaker demand trend.

  • Crude stocks built driven by a large drop in US exports combined with an unexpected decline in refinery runs in the week. Refinery utilization fell back to the lowest since mid March with a decline of 1% from last week. US crude stocks are now at the highest since June as stocks built for the fifth week in the last six. Crude production remain unchanged at 13.1mbpd.
  • Gasoline stocks showed a small build on the week with an increase in production offsetting higher implied demand on the week. Both imports and exports also rose towards seasonal highs. Four week implied gasoline demand however drifted lower again this week to continue the trend seen since late March.
  • Distillates stocks drew with a drop in production and small recovery in implied demand. Despite the increase, the four week implied demand remains well below seasonal normal except for levels seen in 2020.
    • Brent JUL 24 down 1.8% at 84.79$/bbl
    • WTI JUN 24 down 1.9% at 80.39$/bbl
    • WTI-Brent up 1.35$/bbl at -4.99$/bbl
    • WTI JUN 24-JUL 24 down 0.06$/bbl at 0.59$/bbl
    • WTI JUN 24-DEC 24 down 0.32$/bbl at 3.66$/bbl
    • US gasoline crack down 0.3$/bbl at 30.79$/bbl
    • US ULSD crack down 0.3$/bbl at 24.21$/bbl
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Crude market extends earlier declines after a larger than expected build in US crude inventories according to the updated weekly EIA petroleum data. Gasoline cracks have pulled back from earlier gains on softer demand while diesel spreads are stable with a pause in the weaker demand trend.

  • Crude stocks built driven by a large drop in US exports combined with an unexpected decline in refinery runs in the week. Refinery utilization fell back to the lowest since mid March with a decline of 1% from last week. US crude stocks are now at the highest since June as stocks built for the fifth week in the last six. Crude production remain unchanged at 13.1mbpd.
  • Gasoline stocks showed a small build on the week with an increase in production offsetting higher implied demand on the week. Both imports and exports also rose towards seasonal highs. Four week implied gasoline demand however drifted lower again this week to continue the trend seen since late March.
  • Distillates stocks drew with a drop in production and small recovery in implied demand. Despite the increase, the four week implied demand remains well below seasonal normal except for levels seen in 2020.
    • Brent JUL 24 down 1.8% at 84.79$/bbl
    • WTI JUN 24 down 1.9% at 80.39$/bbl
    • WTI-Brent up 1.35$/bbl at -4.99$/bbl
    • WTI JUN 24-JUL 24 down 0.06$/bbl at 0.59$/bbl
    • WTI JUN 24-DEC 24 down 0.32$/bbl at 3.66$/bbl
    • US gasoline crack down 0.3$/bbl at 30.79$/bbl
    • US ULSD crack down 0.3$/bbl at 24.21$/bbl