Crude Drifts Lower and Cracks Rally After EIA Data

Crude markets edge lower after an initial reaction higher in response to the latest EIA weekly oil data. Gasoline and diesel crack spread are extending daily gains after stock draws and higher implied demand.

• EIA weekly oil data showed a larger than expected draw in US crude, gasoline and distillate inventories. Crude stocks drew with higher exports and despite higher imports and an unexpected dip in refinery utilisation.
• Stocks at Cushing showed another decline to the lowest in two months as refiners gradually return from maintenance and with strong export demand. US exports rose again to maintain the strong levels already seen this year while imports also jumped higher. Midwest crude imports jumped to highest since 2021.
• US has started the withdrawal of the 26m congress mandated SPR sales taking overall SPR level to a fresh 40 year low.
• Distillate and gasoline stocks drew with lower imports and a drop in refinery runs while implied demand for both products also increased on the week.
  • Brent JUN 23 down -1% at 84.05$/bbl
  • WTI MAY 23 down -1.2% at 79.75$/bbl
  • WTI-Brent up 0.02$/bbl at -4.27$/bbl
  • WTI MAY 23-JUN 23 down -0.01$/bbl at -0.02$/bbl
  • WTI JUN 23-DEC 23 down -0.12$/bbl at 3.56$/bbl
  • WTI DEC 23-DEC 24 down -0.18$/bbl at 5.79$/bbl
  • US gasoline crack up 1.6$/bbl at 36.32$/bbl
  • US ULSD crack up 0.7$/bbl at 32.66$/bbl