Crude Dips Lower and Cracks Gain Following Weekly EIA Data

Crude futures extend the decline and oil product cracks edged back up from earlier losses after a crude stock draw and small product builds with another bigger than expected decline in refinery utilisation.

• The crude draw was driven by a surge in exports and drop in production while imports also dipped lower. The oil adjustment factor remains high with little change on the week. A rise in Midwest refinery rates to the highest since Aug 2022 at 95.3% contributed to a small draw in Cushing stocks. East Coast refinery utilisation fell as expected due to the Bayway outage.
• Gasoline stocks showed a small build despite the drop in production while four week gasoline implied demand dipped slightly on the week despite an increase on the week.
• Distillates stocks also gained slightly supported by a drop in exports. Four week implied demand also fell despite a gain on the week.
  • Brent AUG 23 down -3.3% at 74.56$/bbl
  • WTI AUG 23 down -3.6% at 69.94$/bbl
  • WTI-Brent down -0.05$/bbl at -4.61$/bbl
  • WTI AUG 23-SEP 23 down -0.1$/bbl at -0.09$/bbl
  • WTI DEC 23-DEC 24 down -0.5$/bbl at 3.05$/bbl
  • US 321 crack down -0.2$/bbl at 33.01$/bbl
  • US gasoline crack down -0.1$/bbl at 33.71$/bbl
  • US ULSD crack down -0.5$/bbl at 31.6$/bbl