Crude And Margins Gain After Large Crude Draw and Product Demand Increase

Crude market trading up to the highest of the day after a big draw in US crude inventories. Time spreads and refining margins are just edging higher supported by another fall in gasoline stocks and slightly higher oil product implied demand.

• Crude inventories showed an unexpected large draw with a big fall in imports and despite higher production and strong exports while refinery utilisation dipped against market expectations. US Gulf Coast stocks fell by 11.4mbbls and the most on record.
• Gasoline stocks drew with a lower than expected refinery utilisation combined with an increase in exports. Weekly implied increased but the four week average remained relatively unchanged.
• Distillates stocks in Midwest drop to the lowest since Dec 2020 with an increase in demand offsetting a fall in exports.
  • Brent JUL 23 up 2.2% at 78.55$/bbl
  • WTI JUL 23 up 2.4% at 74.63$/bbl
  • WTI-Brent up 0.01$/bbl at -3.9$/bbl
  • WTI JUL 23-AUG 23 up 0.03$/bbl at 0.09$/bbl
  • WTI DEC 23-DEC 24 up 0.36$/bbl at 4.14$/bbl
  • US gasoline crack up 0.5$/bbl at 35.14$/bbl
  • US ULSD crack up 0.6$/bbl at 26.34$/bbl