Crude and Product Markets Fall After US Inventory Gains

Crude oil has given up earlier gains after a build in crude and a larger than expected recovery in refinery utilisation leading to higher product inventories. Diesel and gasoline crack spreads have also pulled back with the stock builds and low implied demand.

• Crude inventories reached the highest since June 2021. The crude build was support by the highest crude production since April 2020 at 12.3mbpd, with strong imports maintained from last week and a slight dip in exports. The increase was despite a recovery in refinery utilisation from 85.7% to 87.9%.
• Cushing stocks continued to build for the sixth week to bring inventories levels back above the five year average.
• Distillate and gasoline stocks were boosted by high than expected production and a surge in imports while export held steady at relatively high levels. Distillate stocks have built to the highest level in a year with a big build in the East Coast assisted by the warm winter weather. Distillate and gasoline four week average implied demand shows no signs of recovery with both holding steady near the bottom of the five year range.
  • Brent APR 23 up 0.1% at 83.77$/bbl
  • WTI MAR 23 up 0.3% at 77.35$/bbl
  • WTI-Brent up 0.12$/bbl at -6.18$/bbl
  • WTI MAR 23-APR 23 up 0.01$/bbl at -0.24$/bbl
  • WTI JUN 23-DEC 23 up 0.09$/bbl at 2.53$/bbl
  • US gasoline crack down -0.8$/bbl at 24.67$/bbl
  • US ULSD crack down -1$/bbl at 43.53$/bbl